๐ Bitcoin price is up today, reaching a high of $35,121. The increase can be attributed to the growing hype around a spot Bitcoin ETF, which has led to higher volumes and bullish momentum across the crypto market. Despite some obstacles at the $35,000 level, the rally’s sustainability is hinted at by the reasons behind this week’s price move.
๐ฆ Institutional interest in Bitcoin is boosting market sentiment, even in the face of macro headwinds. The recent surge in price has pushed the Crypto Fear and Greed index to its highest level since Bitcoin’s all-time high in 2021. The BlackRock iBTC fund has become the first spot Bitcoin ETF to be listed by a Nasdaq clearing firm, despite the SEC’s previous reluctance to approve such ETFs.
๐ Analysts speculate on the impact of a spot Bitcoin ETF approval on BTC price, with estimates of a $600 billion increase in demand and a $1 trillion market capitalization boost. Galaxy Digital predicts a minimum of $14.4 billion of inflows in the first year, with a 74% price increase. The founder of Capriole Investments suggests that a Gold ETF approval led to a 350% return for gold.
๐น Bitcoin volumes leaving exchanges are seen as a bullish signal, with traders withdrawing BTC for long-term self-custody. Spot volume has also significantly increased recently, surpassing $35 billion for the first time since March. The sustained spot volumes are viewed as an important factor in the recent price breakout.
๐ผ In other news, Mike Johnson has been chosen as the next speaker of the United States House of Representatives. His views on crypto are unclear, unlike Representative Tom Emmer, who had been seen as a potential advocate for digital assets in Congress before facing opposition from former President Donald Trump.
๐ผ With the new speaker in place, the House of Representatives can resume legislative activities related to crypto. Several bills have already been passed out of committee, but a new spending bill may be needed to address a potential government shutdown before November 17.