After an increase of 28.5% in October, the Bitcoin (BTC) continues its rally in November. This Thursday morning (9) the largest cryptocurrency hit the market $37,000a price not seen since the Earth’s collapse (LUNA) in May 2022.
The biggest reason behind the price escalation remains market speculation about the approval of spot Bitcoin ETFs in the US. According to Bloomberg analysts Eric Balchunas and James Seyffart, there is a period this week and next during which the SEC could approve some requests.
“Even if no approvals come in this month, we still think there is a 90% chance of approval by January 10”they commented.
The 550 Days Since the Earth’s Collapse (LUNA)
Bitcoin was already under pressure from the Fed’s rate hikes since 2021, but the collapse of Terra (LUNA) and its stablecoin caused BTC to lose whatever support it had in May 2022.
One of the reasons was the sale of ~80,000 bitcoins by Luna Foundation Guard (LFG). Although the sale was an attempt to save UST’s support, this sum, valued at R$12.3 billion at the time, yielded nothing. Both Terra (LUNA) and TerraUSD (UST) lost almost all their value and never recovered.
At the time, LUNA was one of the largest cryptocurrencies on the market and its collapse ultimately generated a domino effect on the market. An example was the bankruptcy of Three Arrows Capital (3AC), but this could also have affected other companies such as FTX.
‘The Killing Blow in Alameda [Research] it was LUNA. $12 billion in a month and a half is crazy.”
The death knell for Alameda was LUNA
-$12 billion in 1.5 months is wild pic.twitter.com/wZopXnHlVf
— Will (@WClementeIII) September 12, 2023
With so many companies going bankrupt in the following months, Bitcoin went into freefall. In addition to falling from $31,900 to $17,500 in June 2022, Bitcoin also reached $15,500 in November of that year, closing the year at $16,500.
Bitcoin leaves LUNA ghost behind
When Bitcoin reached $37,000 this Thursday morning (9), it traded back to the value it had before the bankruptcy of Terra (LUNA). Although the recovery is slow, Bitcoin still leaves a ghost behind.
Moreover, the market is also free of some figures such as Sam Bankman-Fried, who was found guilty of several crimes last week, and also Do Kwon, the eccentric founder of LUNA.
With its past resolved, Bitcoin can now follow its destiny. As noted at the beginning of the article, experts point out that this Thursday (9) a window of at least eight days has opened in which the SEC can approve the ETF applications on its desk.
In any case, the deadline for the SEC to respond to the Ark Invest ETF has been set for January 10, a date that is already approaching. Deadlines for other requests, including those from BlackRock and Fidelity, are set for March but could be approved before then.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
