Behind Bitcoin’s Meteoric Rise: Factors Driving the Pump – Coinpedia Fintech News

  • Bitcoin recently peaked at $35,300, following notable market events.
  • iShares Spot Bitcoin Trust was listed on The Depository Trust & Clearing Corporation.
  • SEC approved the listing of Grayscale’s Ethereum Futures Trust (ETF).

Bitcoin’s value has been soaring, leaving many puzzled and intrigued about what’s causing this impressive upward trend. Not long after reaching a milestone of $34,000, it temporarily hit an impressive $35,300. Now, as the dust begins to settle, several factors seem to be at play behind this rise, casting a spotlight on new developments in the cryptocurrency arena.

Fresh Trust in the Market

As highlighted by Lookonchain, one driving factor behind Bitcoin’s rise is the listing of the iShares Spot Bitcoin Trust on The Depository Trust & Clearing Corporation. Known in shorthand as IBTC, this development has garnered positive attention. 

Adding fuel to the fire, the U.S. Securities and Exchange Commission (SEC) greenlighted a change for listing and trading shares of Grayscale’s Ethereum Futures Trust, often referred to as an ETF.

The king of cryptocurrencies has also seen astonishing growth in its spot trading volume. Recent data shows trading volumes skyrocketing to over $35 billion in just 24 hours, marking a 241% increase during that short span. This uptick in interest and trading could be attributed to the buzz around BlackRock’s proposal for a Bitcoin ETF, and many are optimistic about its future.

Predictions and Market Behavior

Bitcoin’s recent rally does come with cautionary notes. Market experts point to the relative strength index (RSI) suggesting a potential for consolidation or a minor pullback. However, market trends indicate strong buyer interest.

If Bitcoin remains above $32,000, it shows continued confidence, hinting at attempts to surpass the $35,000 mark. Success there could see it pushing towards $37,000, a level expected to be fiercely contested.

Surpassing that might lead to the crypto giant aiming for $40,000. On the flip side, a sharp drop below $30,000 might indicate profit-taking by traders, potentially pulling Bitcoin towards a 20-day average of around $28,000.

In any case, with the latest developments and the buzz around Bitcoin, the cryptocurrency world is definitely in for an exciting time.

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