Bitcoin surges to $35,000, reaching a 1.5-year high on the back of ETF expectation

Bitcoin, the cryptocurrency with the largest market capitalization, reached its highest level since May 2022 on Tuesday amid growing speculation about the imminent launch of a Bitcoin exchange-traded fund (ETF). According to CoinMarketCap data as of 10:30 am, Bitcoin was trading at $34,408.26, marking a 7.7% increase from the previous day.

Ethereum, the second-largest cryptocurrency, also surged by 14.6%, reaching $1,822 on Tuesday morning. Other cryptocurrencies like Ripple, Solana, and Cardano also experienced notable gains.

The total market capitalization of the cryptocurrency market increased by 8.71% to $1.27 trillion, and trading volume surged by a substantial 70% to $81.2 billion within the last 24 hours.

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In the past week, Bitcoin has reasserted its dominance in the market, holding a 53.1% share, followed by Ethereum at 17.3%.

Bitcoin ETF Expectations

Several investment firms, including BlackRock and Fidelity Investments, have pending applications for Bitcoin ETFs in the US. The recent listing of BlackRock's iShares ETF on a website fueled speculation about their potential approval. A Bitcoin ETF is expected to streamline the process of buying and selling Bitcoin through traditional stock markets.

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On Monday, a US federal appeals court solidified a victory for Grayscale Investments LLC in its efforts to establish a spot Bitcoin ETF, despite objections from the US Securities and Exchange Commission (SEC). The SEC has been hesitant to approve Bitcoin ETFs due to concerns about potential fraud and market manipulation. However, earlier this year, a US federal court instructed the SEC to reconsider its objections to Grayscale's ETF application, a decision that was formalized on Monday.

Bitcoin's Remarkable Performance in 2023

The cryptocurrency rally follows this ruling, and in 2023, the price of Bitcoin has more than doubled, starting the year at just over $16,000. Shivam Thakral, the CEO of the crypto exchange BuyUcoin, noted that investors are increasingly turning to digital assets in these uncertain times to safeguard their wealth.