Bitcoin price soars as investors await ‘bullish event’

Bitcoin investors worldwide are feeling optimistic as the infamous cryptocurrency reached new heights in late October, an event they have popularly dubbed “Uptober.” We have witnessed a significant increase in price, with the price reaching a new high for the first time since May 2022. After months of struggling to stay above the $30,000 price mark, it accelerated to surpass $35,000 and is now hovering around that price range.

Bitcoin’s price has increased by 20-30% in the last five days, according to experts. While volatility is common for this cryptocurrency, the sudden surge in price and trading volume is noteworthy. It is believed that the BlackRock Bitcoin exchange-traded fund caused a ripple effect that boosted the coin’s price.

What is the BlackRock exchange?

The BlackRock Exchange Fund (STSEX) invests in a diversified and supervised portfolio for mid- to large-sized companies. The BlackRock exchange-traded fund successfully included Bitcoin in their investment lists, which is managed by the Depository Trust and Clearing Corp., a clearing house for stocks and ETFs operated by Nasdaq.

Earlier this year, BlackRock applied to include Bitcoin and registered it as a spot ETF. Like other companies in the pursuit of achieving the same goal, the applications were pending. However, Blackrock’s application came through, becoming the first ETF provider to do so and ahead of its rivals in the market.

As news of BlackRock iBTC approval spread, the price skyrocketed, as expected, encouraging more people to buy in and even causing FOMO (fear of missing out). The bullish momentum sent the Crypto Fear and Greed index to its highest level since Bitcoin price hit the $69,789 all-time high in November 2021. Bitcoin investors all around the world are taking the chance to make huge profits with the recent crypto payments increase.

What does this mean for Bitcoin?

The BlackRock ETF is one of the largest in the world. It is handling trillions of dollars of investment for top officials and companies.  Thus, launching the BlackRock Bitcoin ETF will serve as a boost for the company and the coin itself. According to financial experts, a Bitcoin ETF approval would do a lot for the current, especially during this period.

Reports say Bitcoin stands to generate $600 billion in demand, pushing its total capitalization value to $1 billion. “Gold sprung out of a bear market to generate a 350% return after a Gold ETF was approved, Bitcoin is likely to experience the same”, according to Charles Edwards, the founder of Capriole Investments.

What should Bitcoin investors know?

 Market analyst advises Bitcoin investors that BlackRock iBTC’s recent success is far from being completed. He added that the Bitcoin ETF listing in the DTCC is yet to be launched fully. It’s important to know that other companies like Grayscale Investments, have also sought approval to introduce similar Bitcoin ETFs.

Grayscale Investments ETF application once faced rejection by the US Securities and Exchange Commission’s initial rejection. However, a three-judge panel for the DC Court of Appeals reversed the regulator’s decision in August 2023, highlighting that the US Securities and Exchange Commission’s (SEC) rejection was unjustified. This turn of events is bound to yield positive momentum for the crypto payment gateway, so there is a slim chance of another Bitcoin boom in the coming months. Investors should know that the powers rely on the SEC’s verdict and the recent appreciation in Bitcoin’s price may be based on false news reporting.