Bitcoin experienced a second rally today, catapulting its price to over $34,000, marking a record high for 2023 and stirring excitement in the crypto community. The surge led to a cascade of liquidations, with $114 million in BTC shorts being wiped out in the last hour alone, contributing to a total of $145 million across various crypto assets, as reported by analytics firm CoinGlass.
The initial rally saw Bitcoin breaking past the $31,000 mark earlier in the day, with the second wave of momentum propelling it even further. Coinbase, one of the leading crypto exchanges, recorded BTC trading at a premium, reaching close to $35,000.
Analysts attribute these rapid price movements to the growing anticipation surrounding the potential approval of Bitcoin spot ETF applications by the U.S. Securities and Exchange Commission (SEC). A Washington, D.C. judge’s order for the SEC to reevaluate a long-delayed Bitcoin ETF application from Grayscale has added fuel to the speculation.
In a parallel development, investment giant BlackRock updated its application, signaling the initiation of preliminary steps to launch its Bitcoin spot ETF. This includes fund allocation and securing a ticker symbol. While these moves don’t guarantee approval, they indicate a level of confidence in the eventual green light from the SEC.
Crypto experts point out that the consecutive rallies breached crucial market resistance levels at $31,000 and $34,000, suggesting a bullish sentiment. Notably, this price action challenges the “Bearish Bitcoin Fractal,” a pricing model predicting record highs followed by significant downturns. Influential Crypto Twitter commentator Rekt Capital believes these developments could debunk the bearish narrative and pave the way for sustained positive momentum in the Bitcoin market.
As the crypto space continues to evolve, these events underscore the dynamic nature of digital asset markets and the profound impact regulatory decisions can have on price movements.
