In an unexpected turn of events, Bitcoin, the largest cryptocurrency globally, has undergone a notable trend reversal, with the BTC price surging to $38,000 on Wednesday. This marks the first instance in the past 18 months, dating back to May 2022, that Bitcoin has reached these price levels.
This development comes despite the US SEC delaying its decision to approve the spot Bitcoin ETF. The introduction of ETFs would simplify access to Bitcoin for both institutional investors and individual retail investors. This could lead to a massive influx of funds in the asset class.
Bitcoin has gained approximately 6% in the last 24 hours, reaching $37,843 as of press time. This extends its year-to-date recovery from a 2022 decline to 129%. On the other hand, altcoins, including the second-ranked Ether, also experienced upward movement.
But then what’s causing this rally in the Bitcoin price? Analysts believe that the Federal Reserve is almost done with its rate hike cycles which could be a major boost to the crypto prices. In a note to investors, Zach Pandl, managing director of research at crypto fund provider Grayscale Investments LLC wrote:
An enigma for investors revolves around whether the surge in Bitcoin this year has already factored in the anticipated effects of spot ETFs. The approval might be “priced in,” but the crucial question is the extent of inflows that the ETFs will generate, say several market analysts.
Well, Bitcoin is exhibiting a good amount of volatility after facing a selling pressure at $35,000 earlier this week. The BTC price is now above its crucial support levels of $36,000 and so analysts believe that it can rally further all the way to $43,000 and above in the coming weeks
The Bitcoin network activity is showing good strength. As per Santiment, Bitcoin’s NVT (Network Value to Transaction) ratio has experienced a notable improvement, marking it as one of the key alpha crypto market signals for traders. This metric assesses the health of the circulating unique $BTC amount relative to current market cap levels.