The value of bitcoin soared above $66,895 in October, marking a historic milestone.
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Bitcoin reached its highest level since April as traders expressed optimism about the possibility of a spot bitcoin ETF, following recent applications by companies like BlackRock.
According to CoinMetrics, the price of the flagship cryptocurrency reached a high of $30,749.45, its highest level since April 14. At 6:39 p.m. ET, the price was $29,988.46.
Investors are becoming more optimistic about major institutional players like BlackRock entering the digital assets market.
This sentiment remains strong despite recent negative news in the crypto space, including the collapse of FTX and subsequent regulatory fallout.
“The announcement of spot bitcoin ETF applications by larger institutions has reinvigorated bullishness in the crypto markets,” said Vijay Ayyar, head of international markets at CoinDCX, India’s largest crypto exchange, in an interview with CNBC.
“We also encountered major support at $25K for BTC, and this upward movement has been driven primarily by spot buying, which is a healthy trend,” added Ayyar.
“In terms of market structure, BTC has broken a major downtrend that started in April and lasted for about 2 months. Most traders are now anticipating a test of at least $32,000. Breaking that level would open up the possibilities of $36,000 and eventually $45,000 to $48,000,” explained an analyst.
ETF announcements
Coinbase would act as the bitcoin custodian for the proposed BlackRock ETF, leveraging their existing strategic partnership. Coinbase has recently faced regulatory pressure from the U.S. Securities and Exchange Commission.
Following BlackRock’s announcement, several other asset management firms, including WisdomTree and Valkyrie, have also submitted their applications for a bitcoin ETF.
Additionally, investors are closely monitoring macroeconomic indicators to gauge the movement of the crypto market. Historically, digital coins have shown correlation with broader financial market movements, often mirroring U.S. equity prices. Therefore, investors are paying attention to data on inflation and economic health to anticipate future bitcoin trends.
“Overall, crypto has been lagging behind traditional equity markets, so this recent surge can be seen as a catch-up move,” noted Ayyar.
(Correction: An earlier version of this story misstated the timing of BlackRock’s filing for its spot bitcoin ETF.)
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