Bitcoin continued to demonstrate remarkable resilience on Wednesday, signalling its determination to carry on with its impressive rally that began earlier this week.
Notably, the leading cryptocurrency by market capitalization surged Tuesday and touched $35,000 for the first time in approximately 17 months, sending waves of optimism throughout the crypto community. This remarkable momentum was driven by pivotal developments that unfolded in the cryptocurrency space.
One of the significant factors fueling Bitcoin’s resurgence was the news that BlackRock’s iShares Bitcoin Trust had been re-listed on the Depository Trust & Clearing Corporation (DTCC) on Monday. However, today, it came to light that the ETF had, in fact, been listed on the DTCC since August, as clarified by a DTCC spokesperson.
In addition to the BlackRock development, the crypto community has attributed the bullish momentum to the U.S. Securities and Exchange Commission’s (SEC) involvement in evaluating Grayscale’s spot Bitcoin exchange-traded fund (ETF) application. Notably, the U.S. Court of Appeals for the D.C. Circuit issued a directive on October 23, 2023, ordering the SEC to revisit Grayscale’s ETF proposal. This directive has placed the SEC at a crossroads, where they either approve Grayscale’s proposal or provide alternative reasons for rejection.
Meanwhile, amid this snarl-up, Grayscale CEO Michael Sonnenshein expressed unwavering confidence in navigating the challenging regulatory landscape. In a tweet on Tuesday, he wrote, “Investors are demonstrating a growing interest in diversifying beyond Bitcoin and Ethereum, frequently seeking our guidance to gain a deeper understanding of this resilient and ever-evolving asset class. We are solidifying our specialized approach with Grayscale Crypto Sectors.”
Another contributing factor to Bitcoin’s recent surge is the victories the cryptocurrency sector has achieved against the SEC, most notably in the ongoing Ripple lawsuit. On October 23, 2023, Judge Analisa Torres issued an order officially dismissing the case against Ripple executives Brad Garlinghouse and Chris Larsen. This came after the SEC dropped charges against the duo last week for their alleged involvement in selling XRP tokens.
That said, as Bitcoin continues to make headlines with its impressive price performance, the crypto community remains vigilant, closely monitoring key events that have the potential to impact the market.
Notably, Bitcoin’s recent ascent has placed its price above key support of around $31,700. Price is thus likely to revisit this area before bouncing off to create new highs. According to crypto fund manager Dan Tapiero, the support at $25,000 is poised to propel Bitcoin’s value to the range of $35,000 to $45,000 in the near future. This positive outlook is in addition to the Consumer Price Index (CPI) with a 2% handle, which is expected to drive down interest rates, setting the stage for Bitcoin to reach new highs in 2024.
At press time, Bitcoin was trading at $34,295 after an impressive 19.21% surge over the past week.
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