Bitcoin hit the much-coveted $31,000 level on Monday for the first time since mid-July.
The world’s largest cryptocurrency peaked at $31,275.95 on CoinGecko before falling back to its current price of just $31,150.50 — a 4.2% jump in 24 hours. The latest uptick comes amid optimism that a spot Bitcoin exchange-traded fund (ETF) might be on its way in the United States. A much-anticipated investment vehicle, a spot Bitcoin ETF is expected to attract more institutional investors to the crypto world.
Strategists from JPMorgan postulated sometime last week that a spot ETF could be greenlighted by Christmas this year.
Renowned asset managers who have filed paperwork with the U.S. Securities and Exchange Commission (SEC) are tweaking their applications in hopes that the agency will give them its regulatory blessing.
The SEC’s failure to appeal its August court loss over Grayscale’s request to convert its flagship GBTC into a spot ETF ignited hope among investors that the regulator might finally approve the application.
The $31K region has historically been considered one of the heaviest resistance and support levels. If the cryptocurrency manages to gain significant ground above this price point, it could be interpreted as an encouraging cue for a continued mega rally.
Chainlink (LINK), Polkadot (DOT), and Dogecoin (DOGE) were among the best-performing large-cap digital assets, with 9.1%, 6.9%, and 5.2% jumps, respectively. Ethereum (ETH) and Ripple’s XRP posted 2.8%-4.1% gains.
Why Bitcoin’s Ongoing Rally Is Different From The Rest
A key difference making this rally stand out from previous bull runs is the market’s temperature. Per CryptoQuant’s head of Research, Julio Moreno, the ongoing upsurge is not showing any signs of being in “overheated-bull territory.”
Bitcoin has gained over 87% since the beginning of 2023, when it was trading for around $16,600. Nonetheless, the flagship crypto is still 55.09% down from its November 2021 lifetime peak of $69,044.