Bitcoin has surged above the $45,000 mark for the first time in almost a month, buoyed by anticipation surrounding the potential approval of a U.S. spot bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC).
The cryptocurrency's price rose by 3.19% to reach $45,526.51, according to Coingecko, signaling renewed enthusiasm in the crypto market. However, ether, the second-largest cryptocurrency by market capitalization, remained relatively unchanged.
The latest uptick in Bitcoin's value coincided with a continuation of losses in shares of New York Community Bancorp. This trend underscores Bitcoin's attractiveness as a hedge against uncertainty, particularly in the wake of last year's regional banking crisis.
Analysts suggest that large investors, commonly referred to as "whales," have been accumulating Bitcoin assets over the past two weeks, especially as the cryptocurrency has struggled to surpass its December and January highs. Bartosz Lipiński, CEO of crypto trading platform Cube exchange, noted the significant increase in the number of Bitcoin wallets holding more than 1,000 BTC, indicating growing institutional interest in the digital asset.
Moreover, despite a decline in average daily trading volumes for Bitcoin and ether over the past two weeks, investor sentiment remains optimistic. Crypto-related stocks experienced notable gains, with shares of Coinbase, a leading crypto exchange, surging by about 8.59%, while Bitcoin proxy Microstrategy saw an increase of 15.71%. In the mining sector, companies like CleanSpark, Riot Platforms, Marathon Digital, and Iris Energy all posted significant gains, reflecting the broader bullish sentiment in the crypto market.
As Bitcoin continues its upward trajectory, investors are closely watching developments surrounding the potential SEC approval of a Bitcoin ETF, which could further fuel adoption and investment in the cryptocurrency. With growing institutional interest and positive market momentum, many believe that Bitcoin is poised for a strong bull cycle in the coming months.