Crypto News- Bitcoin is on the upswing, edging closer to the $38,000 mark, buoyed by optimistic expectations of heightened demand from exchange-traded funds (ETFs). The digital giant witnessed an impressive 6.5% surge in the past 24 hours, now standing at $37,976, marking a remarkable year-to-date rebound of 129%, rebounding from the downturn it faced in 2022. Notably, other cryptocurrencies, including Ether, are following suit and experiencing a surge in value.
Surge in Bitcoin Price Nearing 38,000 Dollars Attributed to Growing ETF Popularity and Federal Reserve Interest Rate Influences
The recent decision by the US Securities and Exchange Commission (SEC) to defer the approval of the first Bitcoin-focused ETF has not dampened spirits. Bloomberg Intelligence anticipates a green light for a cluster of such funds by January. These ETFs are anticipated to streamline access to Bitcoin, attracting both institutional and retail investors.
Adding fuel to the crypto fire is the belief that the Federal Reserve has put a hold on interest-rate hikes, a factor influencing the upward trajectory of crypto prices. Cryptocurrencies, often swayed by shifts in liquidity within financial markets, are experiencing a positive ripple effect.
Investors are now engaged in contemplation, weighing whether this year’s surge in Bitcoin’s value has adequately considered the potential impact of spot ETFs. While approval may already be factored into the current price, the spotlight remains on the extent of inflow these ETFs will attract. The crypto market eagerly awaits the unfolding dynamics, guided by both regulatory decisions and broader economic indicators.