Bitcoin Hits 1.5-Year High: Here's The Reason Behind BTC's Latest Rally

This bullish trend has been predominantly fueled by mounting anticipation regarding the introduction of a Bitcoin ETF.

Stocks closely associated with the cryptocurrency space experienced significant surges.

In a noteworthy surge on Monday, October 23, Bitcoin experienced a remarkable 10 per cent boost, reaching levels not seen in a year and a half. The cryptocurrency's impressive climb was accompanied by a simultaneous upswing in crypto-related equities, fueled by growing speculation surrounding the potential approval of a Bitcoin exchange-traded fund (ETF). This development has sparked heightened enthusiasm throughout the sector and led many short-sellers to exit their positions.

As per the latest data, the world's most prominent cryptocurrency, Bitcoin, was trading at $32,833, after briefly touching a high of $34,283, at the time of writing. Concurrently, stocks closely associated with the cryptocurrency space, including Coinbase Global, Marathon Digital, and MicroStrategy, a Bitcoin holder, experienced significant surges. Furthermore, they continued to make substantial gains during after-hours trading sessions in the United States.

In a similar vein, the secondary cryptocurrency, Ethereum, witnessed an impressive 6 per cent surge, attaining a two-month high and surpassing its 200-day moving average.

This bullish trend has been predominantly fueled by mounting anticipation regarding the introduction of a Bitcoin ETF. Recent reports, including one from Reuters, suggested that the US Securities and Exchange Commission (SEC) is refraining from appealing a prior decision in which they rejected an application from Grayscale Investments. Market participants view the possibility of a spot Bitcoin ETF as a potential catalyst for broader investments in the cryptocurrency, offering a more accessible route for a wide range of investors to gain exposure without the need for direct trading.

Several prominent financial institutions, including BlackRock, VanEck, WisdomTree, Fidelity, Bitwise, and Invesco, have all submitted applications for Bitcoin ETFs, currently pending approval. Notably, BlackRock's iShares ETF has recently appeared on a list of ETFs on the website of the clearinghouse DTCC, sparking speculation that its approval may be imminent.

However, details regarding the timing and reasons for its listing on the ETF roster remain unclear, as both DTCC and BlackRock have refrained from immediate comment when contacted by phone and email. It is essential to underscore that last week, BlackRock publicly denied an erroneous report claiming that the ETF had already received approval. Sources with close ties to the SEC confirmed that the application is still pending review.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.