Over the last few months, the cryptocurrency market has been relatively calm and there have been no major movements. Bitcoin, for example, has been hovering between $26,000 and $30,000 since April without breaking any of these hurdles. It’s what some are already describing as a new ‘crypto winter’, but this week saw an unexpected and quite notable spike.

Bitcoin is toying with $35,000. After weeks and months without major shocks, last Monday Bitcoin experienced a rally that took the cryptocurrency to $31,000. The rise continued in the following hours, with Bitcoin breaking through $32,000, $33,000, and $34,000, rising above $35,000 for a few hours. Currently, its price has dropped significantly and is around $33,800.

May 2022 levels. It has been almost 18 months since Bitcoin reached this value. At that time, fiascos occurred at Terra-Luna, Three Arrows Capital, Genesis, and FTX, and the cryptocurrency dropped dramatically to $15,000, which many said threatened its existence.

What happened? It all boils down to one acronym: ETFs. Exchange-traded funds, which are investment funds traded on secondary exchanges, have been trying to cover cryptocurrencies for some time. There are signs that these financial products may finally be approved in the US, which would make investing in bitcoin and other cryptocurrencies much more accessible to the public.

Black Rock. As noted on Reuters, one of the most important offers in terms of ETFs comes from financial giant BlackRock. It looks like this ETF has been added to a list of candidates for future approval. That doesn’t mean it will eventually be approved as an ETF, according to the Depository Trust and Clearing Corporation (DTCC), which is responsible for regulating these products. However, this discovery significantly spurred the situation of Bitcoin and other cryptocurrencies soon after.

It left as it came. Shortly after this appearance was discovered, DTCC removed this BlackRock ETF from its list of potential approval candidates; This caused an immediate 3% drop in Bitcoin compared to the maximum levels a few hours ago.

Seemingly turning point. Various investment firms have been trying to regulate investment in cryptocurrencies for years, but so far existing products have remained in the background. ETFs would provide a more accessible option, and if approved by the SEC, demand for bitcoin or other cryptocurrencies included in these funds would likely increase significantly.

apparent halving. The truth is that with interest rates this high, Bitcoin and other cryptocurrencies are not that interesting because traditional investments, which are much more stable and secure, already offer reasonable margins. Things may change next year because it is expected to be the next year halve It occurs in April 2024. This event subsequently caused significant increases in the value of Bitcoin, and enthusiasts of this cryptocurrency hope that what happened before in other countries will happen again. halving pre.

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