Bitcoin rises and surpasses $47,000

Bitcoin rises and surpasses ,000

Bitcoin rose over 7% this Monday (8) to reach a value not seen in 21 months, signaling a potential bull run. The price of Bitcoin reached 47 thousand dollars among the world’s major brokers and is trading above 230 thousand dollars in Brazil, according to the Livecoins price index.

Bitcoin’s rise is attributed to anticipation surrounding the possible approval of a Bitcoin Exchange Traded Fund (ETF) in the United States this week.

Bitcoin, which last saw such a price in April 2022, was boosted by the latest upgrades that major players such as BlackRock and Grayscale submitted to the Securities and Exchange Commission (SEC).

The documents, which focused primarily on the disclosure of ETF management fees, have significantly increased investor optimism about the likelihood of ETF approval.

Market experts summarize the situation as a ‘price war’. They note that different managers introduce nearly identical products, leading to competition based primarily on price.

Bitcoin high 47k 08-01-2024 (CoinMarketCap)
Bitcoin high 47k 08-01-2024 (CoinMarketCap)

SEC expected to approve Bitcoin ETFs at any time

The focus now is on the SEC, which is approaching the deadline for approving or rejecting ETF applications, with Ark 21 Shares being the first. The US regulator is expected to approve eleven funds at the same time to maintain a level playing field.

Former SEC Chairman Jay Clayton, speaking on CNBC’s “Squawk Box,” underscored the importance of the upcoming decision, stating that the approval of ETFs is inevitable.

“There is nothing left to decide. …This is a huge step, not just for Bitcoin, but for the financial industry in general.”

Such a decision would be revolutionary for the cryptocurrency industry and mark a shift from its anti-establishment origins to a recognized and valued asset in the institutional investment landscape.

The positive sentiment surrounding Bitcoin also had a positive impact on the entire cryptocurrency market, with Ethereum, the world’s second largest digital asset, rising 4%.

Interestingly, many of the companies vying for a bitcoin ETF are also in the race to launch Ethereum ETFs on the spot market, with SEC decisions expected later this year.

The bullish wave also extended to shares of cryptocurrency companies. Coinbase, for example, saw its shares rise almost 2%, and mining companies like Iris Energy and Marathon Digital saw gains of more than 7%, while Riot Platforms and CleanSpark also saw significant rallies.

Despite the rise and optimism, some investors warn that the immediate impact of ETF approval may be overstated. However, the long-term implications are undeniable as it could open new avenues for institutional investors to enter the bitcoin market.

Galaxy Digital, which is partnering with Invesco for its proposed bitcoin ETF, estimates the U.S. market size for a bitcoin ETF at about $14 trillion in the first year, growing to $26 trillion and $39 trillion in the next two years.

The possible approval of a bitcoin ETF in the US will be a historic milestone in the evolution of cryptocurrencies, reflecting a growing recognition of the value of digital currencies in the mainstream financial sector and could herald a new era of institutional investment in Bitcoin .

Source: Live Coins