Crypto News– In a week characterized by heightened volatility within the cryptocurrency markets, the prevailing sentiment took a positive turn on Wednesday afternoon, as Bitcoin (BTC) surged past the $37,400 threshold, marking a notable uptick despite the exit of another influential figure in the crypto space.
Despite Binance Reports, Bitcoin Gains Momentum, Crossing 37K DollarsMark in Anticipation of Spot ETF Approval
The tumultuous events unfolded on Monday with the revelation of a potential substantial settlement of U.S. criminal charges against Binance, the world’s largest cryptocurrency exchange. The subsequent confirmation on Tuesday of a substantial $4.3 billion fine and the admission of guilt by Binance’s founder and CEO, Changpeng “CZ” Zhao, who additionally committed to relinquishing his role, sent shockwaves through the markets. Bitcoin, as a result, experienced a dip below $36,000 on that fateful evening.
Despite the initial setback, markets have demonstrated resilience, and Bitcoin has staged a rebound, showcasing a 1.5% gain over the past 24 hours, hovering just below the $37,400 mark. This positive momentum follows the week’s commencement with Bitcoin trading at approximately $37,000.
The broader CoinDesk Market Index (CMI) reflects the market’s recovery, boasting a more than 2% increase over the past 24 hours. Notably, ether (ETH) has taken the lead with a 5% gain, while Solana (SOL) and Chainlink (LINK) both recorded substantial 6% advances.
Beyond the immediate headlines, insightful analysts posit that the resolution of the Binance situation may have paved the way for the U.S. Securities and Exchange Commission (SEC) to potentially greenlight a spot Bitcoin exchange-traded fund (ETF). The argument revolves around the notion that regulatory concerns pertaining to potential overseas manipulation of Bitcoin prices could be mitigated following Binance’s regulatory setbacks and CZ’s departure.
Several observers believe that the plea deal struck with Binance could significantly increase the likelihood of SEC approval for a spot Bitcoin ETF. They argue that the crypto industry’s demonstrated commitment to regulatory compliance, as exemplified by Binance’s settlement, aligns more closely with the standards adhered to by traditional financial firms.
“With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100%, as the industry will be forced to follow the rules that TradFi firms must follow,” remarked Matrixport, a crypto services provider, underscoring the potential positive ramifications of these recent developments on the long-anticipated approval of a Bitcoin ETF.
Majority of Bitcoin (BTC) Supply Now Resides in Profit Territory, Surpassing 80%
In a notable development, the volume of Bitcoin supply currently residing in a profitable position has surged to levels reminiscent of those observed two years ago, during the aftermath of the market’s November 2021 all-time high, as reported by Glassnode.
As detailed in their recent ‘Week on Chain’ report, the analytics provider highlighted that the extent of unrealized profit embedded within these Bitcoin holdings remains relatively moderate. The percentage of the circulating supply of Bitcoin positioned in profit reached an impressive 83.6%, representing 16.36 million BTC during the surge witnessed last week. This statistic holds historical significance, surpassing the all-time mean value of 74%, according to Glassnode’s analysis.
The rally that propelled Bitcoin to its highest level of the year, touching $37,900 on November 16, has since retraced by 4% as markets undergo a cooling phase. Glassnode, utilizing an Accumulation Trend Score, pointed out that this recent surge exhibits more robust accumulation patterns compared to other periods throughout the year. Notably, there were two significant rallies in late January and late March, resulting in price jumps of 40% and 50%, respectively.
The recent leg-up in Bitcoin’s value represents a substantial gain of approximately 40%, starting from $26,800 in mid-October to the peak reached last week. Glassnode emphasized a ‘robust accumulation regime’ during this price expansion, suggesting:
“This broad uptick in accumulation means that strong market performance and increasingly optimistic hopes around a spot BTC ETF are improving investor confidence in the uptrend.”
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