Bitcoin (BTC) price jumped to its highest level in 17 months on Tuesday, hitting $35,000. The skyrocketing prices came after fresh speculation about a spot Bitcoin ETF approval hit the market. Analysts say BTC could break to $40,000 or higher.
The pump began late Monday when news of a possible imminent approval of a spot Bitcoin ETF spread. Unlike the previous ETF-triggered spike that faded shortly after the fake news was debunked, this time BTC/USD smashed past the resistance at $32,800. This invalidated a bearish signal, as the bellwether crypto asset reached above $35,000 for the first time since early May 2022.
Crypto analyst Michael van de Poppe commented on Twitter: “#Bitcoin did hold above $30,200 and started breaking the yearly high. Quite surprised with this strength, but that’s what you get pre-ETF approval. As long as we stay above $31K, everything is all right and we’ll see $40K this year. Times are good. Buy the dips”.
Another analyst, the YouTuber Crypto Rover, says a breakout for BTC above the resistance line of a key triangle pattern could see it rally to highs of $48,000.
The surge in the BTC price is fueled by expectations of a spot Bitcoin ETF approval by the US Securities and Exchange Commission (SEC). On Monday, the $9 trillion asset manager BlackRock’s iShares Bitcoin Trust was listed on the Depository Trust and Clearing Corporation (DTCC) website, with the ticker $IBTC. Eric Balchunas, a senior ETF analyst at Bloomberg, said this was “part of the process of bringing ETF to market”.
The SEC has yet to approve any proposal, but the listing gives a nod to the potential approval. Also notable is the SEC’s acknowledgement of Grayscale’s filing for conversion of its GBTC to a spot Bitcoin ETF, which could pave the way for a listing.
