Bitcoin Hits A 17-Month High, Breaks US$34,000 Level

Bitcoin Hits A 17-Month High, Breaks US$34,000 Level

Despite the rocky road cryptocurrency has found itself in, Bitcoin has managed to soar above most competition, increasing in value by about 10 percent recently, hitting a 17-month high.

As a result, crypto-linked stocks followed it higher as speculation abounded regarding the possibility of a Bitcoin exchange-traded fund (ETF) stoked expectations about the sector and prompted short-sellers bail out.

Bitcoin crosses US$34,000 level

The world’s biggest cryptocurrency at $32,833 seems likely to retain its crown as it was seen recently trading as high as $34,283. Crypto-related shares such as exchange Coinbase Global (COIN.O), miner Marathon Digital (MARA.O) bitcoin holder MicroStrategy (MSTR.O) also saw a significant rise and were making further gains in after-hours U.S. trade.

According to reporting by Reuters, Bitcoin’s smaller rival, Ether, also surged by about 6 percent, hitting a two-month high and breaking above its 200-day moving average.

Market abuzz with talk of Bitcoin-related ETF

There has been much anticipation recently of a Bitcoin ETF (exchange traded fund) due to reports this month that the U.S. Securities and Exchange Commission won’t appeal a ruling it was wrong to reject an application from Grayscale Investments.

As such, the potential of a spot Bitcoin ETF is seen as a driver for larger flows into the cryptocurrency, as it would allow a wider set of investors to buy exposure without directly trading it.

“The market is doing its best to front-run the approval of a physical BTC ETF, with consensus being that it will happen some time in the next three months, if not sooner,” said Matthew Dibb, CIO at crypto asset manager Astronaut Capital.

As reported by Reuters, BlackRock (BLK.N), VanEck, WisdomTree (WT.N), Fidelity, Bitwise and Invesco (IVZ.N) all have pending Bitcoin ETF applications. Blackrock’s iShares ETF is on a list of ETFs on the website of clearing house DTCC, driving the most recent round of speculation that its approval is imminent.

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