Earlier today, Bitcoin reached a peak of $45,210 on the Bitstamp platform.
The increase in popularity of Bitcoin exchange-traded funds (ETFs) is a contributing element to the rise, as seen by the competitive fees that well-known financial institutions like BlackRock, VanEck, and Ark/21Shares have announced for their planned spot Bitcoin ETFs.
This development coincides with a waiting period for SEC regulatory approval, which may signal the beginning of a new phase of institutional investment in cryptocurrencies.
Main reasons behind surge
The announcement that VanEck and BlackRock have undercut several of their counterparts by setting their spot Bitcoin ETF fees at an alluring 0.25% and 0.30%, respectively, has caused quite a stir in the financial community.
It is believed that this strategic pricing is an attempt to get a bigger market share before the SEC decides whether or not to approve these products.
There is a noticeable sense of excitement since these ETFs are seen by the cryptocurrency sector, which is still getting over the FTX fiasco, as a way to connect with institutional investors and potentially bring in a flood of new money. BlackRock’s optimism is especially impressive, considering Fox Business sources indicate the company anticipates receiving SEC clearance for its Bitcoin ETF filing as early as next Wednesday.
Furthermore, a few Wall Street experts maintain their optimism for additional rate decreases by the Federal Reserve.
It is important to remember, too, that the Federal Reserve has only forecast a small number of rate decreases for this year, in contrast to some investors’ more optimistic projections.
The Fed’s cautious stance towards inflation and economic uncertainty, which leaves open the prospect of further rate rises, is the source of the gap.
Bullish technical signal
The upward trend of technical indicators such as the Moving Average Convergence Divergence (MACD) has added to the fervour in the cryptocurrency trading industry.
https://x.com/CryptoJelleNL/status/1744343423157489672?s=20
The connection between two moving averages of the price of an asset is displayed by the MACD, a trend-following momentum indicator.
Analysts have noticed a bullish crossing, which implies that positive momentum is building and might portend a sustained rising trend for the price of Bitcoin. This technical viewpoint strengthens the bullish picture for Bitcoin even in the face of current market warnings.
