Bitcoin takes Ethereum, XRP, and Solana with it into the plus – Market Report
A positive mood has returned to the crypto market, and Bitcoin climbs to its highest level in over a year. However, the trigger is primarily a technical decision by the SEC regarding a Bitcoin ETF.
The SEC in the USA has remained able to provide momentum on the crypto markets through its decisions. This also applies to the past days, when the authority made the once controversial company BlackRock a step closer to the hoped-for approval of a Bitcoin ETF. The background: BlackRock’s planned Bitcoin ETF would be the first in the USA and be permitted under the regulations for the stock exchange. The SEC has indicated to BlackRock that the application is capable of approval in terms of formalities. For observers and market players, this appears as a forthcoming green light for a Bitcoin ETF, which is why the price of Bitcoin has been climbing steeply since yesterday. Currently, BTC is trading at around 35,000 US dollars, achieving a price level that it last exceeded in June 2022.
With the market-dominating Bitcoin (BTC) moving up strongly, the value increases of other significant altcoins such as Ethereum (ETH), Ripple (XRP), and Solana (SOL) went hand in hand. Ethereum aligned temporarily over 7 percent in plus, for XRP, growth of over 4 percent was recorded, and Solana recorded an increase of greater than 6 percent. The crypto market cap tide lifted once again all the boats with a crypto capitalization now at just under 1.36 trillion US dollars, the highest value since May 2022.
The rediscovered optimism is based on the assumption that a Bitcoin ETF from BlackRock would bring fresh capital to the crypto market as well as trust from the traditional financial world. Currently, such Bitcoin ETFs exist only in Canada and in some other regulated markets like in the EU. BlackRock has not only experience in the financial sector and managing classic assets but also immense market power. That’s why the name stands for many for a Bitcoin ETF with starting potential.
Now, however, patience is required, as the introduction of a Bitcoin ETF in the USA might be approved in the spring of 2024. Until then, according to many experts, Bitcoin might rally further in anticipation. However, fears of price manipulation and lack of clarity over further regulatory affairs also linger, which leaves room for downturns.
A few years passed since a Bitcoin ETF was hoped to trigger a profound change in the crypto market. Due to this fact, some experts express skepticism and point out the examples of Bitcoin Futures ETFs, which launched in 2017 but did not spark interest. However, the market situation has changed significantly since then. Bitcoin is now more anchored in the economy; the market cap of Bitcoin alone now stands at around 680 billion US dollars and would correspond to the 8th largest economy in the world. The matter is therefore exciting, and a positive development in the crypto segment, as is evident now, makes the circle of supporters and hence the demand bigger to not miss potential investment opportunities.
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