Bitcoin first reached $35,000 in May 2022. Investors’ eagerness for a bitcoin ETF and a rush to safety drove short liquidations.
It was up almost 9% on Tuesday, trading at $34,349.55, according to Coin Metrics. Late Monday night, it touched $35,113.29, its highest level since May 8, 2022. Due to the increase, coin has grown approximately 110% since January and will reach its bottom in 2022.
Short bets on the digital asset may have sparked the rally as investors rushed to settle them. The cryptocurrency analytics firm CoinGlass reported $275.45 million in short bitcoin liquidations on Sunday and $100.44 million on Monday.
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“The real catalyst that created the ‘god candle’ [Monday] and pushed bitcoin above $34,000 was the $167 million in short liquidations, primarily on offshore exchanges,” says Bitwise Asset Management analyst Ryan Rasmussen. Anyone who shorted bitcoin when its price was above $33,000 is suffering from the unexpected price shift.
A bitcoin-related ETF was expected to be approved in the coming months after the SEC last week declined to appeal a court judgment in Grayscale’s challenge against it by a crucial deadline. Famous investors like Mike Novogratz of Galaxy and Cathie Wood of Ark noted that the SEC’s tone had shifted and that it now views the bitcoin ETF market favorably as momentum built.
Investors can use a bitcoin ETF to track price changes without owning bitcoin. Bitcoin has highly volatile price changes.
Major financial institutions are lobbying for bitcoin exchange-traded funds (ETFs) and applying to sell them because direct cryptocurrency investments are speculative and volatile. They portray them as safer investments than direct investments. These include Fidelity, Grayscale, Invesco, and BlackRock.
According to Coinbase, the SEC will likely approve a bitcoin ETF.
Investors of Bitcoin observe intently.
The market is closely watching for signs of a revival.
After FTX failed and Terraform CEO Do Kwon was indicted for investment fraud in February, the company has had a lot of drama and scandal.
Bitcoin traded above $65,000 in November 2021. In November of the prior year, it decreased to $16,000. Once FTX failed, Sam Bankman-Fried‘s bitcoin exchange went bankrupt.
The SEC, Coinbase, and Ripple are fighting securities law violations in court. The SEC closely monitors cryptocurrency companies.
Coinbase and Ripple have threatened to leave the country and slammed its confusing cryptocurrency rules in response to the SEC’s inquiry.
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