Bitcoin Surges in 2023, Reaching $35,000
Bitcoin’s price surpassed $35,000, marking its highest since May 2022. This surge is attributed to the optimistic outlook regarding a potential Bitcoin ETF and an influx of investors covering short positions. On Tuesday, Bitcoinpeaked at 9% higher, clocking in at $34,349.55, Coin Metrics reported. Its rally late Monday night hit $35,113.29. Since the start of the year, Bitcoin’s growth has soared to nearly 110%. A series of short squeezes, resulting in $275.45 million short liquidations on Sunday and another $100.44 million on Monday, as reported by CoinGlass, is believed to be a driving factor behind this rally.
Ryan Rasmussen, an analyst at Bitwise Asset Management, commented to CNBC, highlighting the unexpected surge driven by short liquidations, particularly from offshore exchanges. Last week, the SEC chose not to challenge a court decision related to Grayscale’s lawsuit, stirring anticipation for a potential Bitcoin ETF in the upcoming months. Figures like Ark’s Cathie Wood and Galaxy’s Mike Novogratz have noticed the SEC’s changing stance, suggesting a more cooperative approach toward the crypto sector.
Introducing a Bitcoin ETF would allow investors to leverage Bitcoin’s price trends without directly owning the cryptocurrency. Despite Bitcoin’s inherent volatility, major financial giants such as BlackRock Invesco, Fidelity, and Grayscale are advocating for Bitcoin ETFs, promoting them as comparatively secure investment avenues versus the inherent speculative risks of direct cryptocurrency investment.
The crypto world is intently monitoring these shifts, signaling a possible resurgence. Over the last year, the industry has witnessed dramatic events, including FTX’s bankruptcy and charges against Terraform and its CEO, Do Kwon, for investor fraud.
Bitcoin hit its peak in November 2021, boasting values over $65,000. However, by the subsequent year, prices had dropped to approximately $16,000, coinciding with FTX’s bankruptcy declaration.
The SEC’s aggressive stance on crypto entities, including its legal battles with Coinbase and Ripple, accusing them of securities law breaches, has been a focal point. Many crypto entities, including Coinbase and Ripple, have criticized the U.S. for its vague crypto regulatory framework and hinted at relocating outside the country in light of the SEC’s actions.
