Bitcoin Price Has Risen Above €32,000 – What Exactly Happened?

The price of Bitcoin rose by more than 10% overnight Monday to Tuesday, surpassing the $35,000 mark (almost 33 thousand euros) for the first time since May 2022. The significant increase in the price of Bitcoin and several altcoins comes at a time when investors are closely watching the situation surrounding the approval of a Bitcoin spot ETF in the United States.

Blackrock Has Obtained a Specific Identifier for the Spot ETF

Word began to spread on the social network Twitter on Monday evening CET that BlackRock, the world’s best-known spot ETF applicant and largest asset manager, has managed to obtain a specific code with the designation “CUSIP”. The acquisition of this code is an important step towards the launch of the ETF. In practice, the CUSIP code represents the identification number of a specific security and serves to identify it easily and accurately. The CUSIP code can be thought of, for example, as the serial number of a particular product. In response to this information, Eric Balchunas, Bloomberg’s chief analyst for ETF funds, said that this is a very important sign that may indicate that the first spot ETFs are on the way.

Furthermore, BlackRock’s spot ETF was listed Monday evening on the Depository Trust & Clearing Corporation, which is a company that provides clearing and settlement services in the financial markets. BlackRock’s ETF is the first-ever bitcoin fund to appear on DTCC under the ticker $IBTC. According to Balchunas, similar moves usually occur just before an ETF launches, and the signals regarding the possible approval of the first spot BTC ETF are very strong, he said.

SEC Must Reconsider the Application From Grayscale

An appeals court in the United States has definitively concluded the lawsuit between the US Securities and Exchange Commission (SEC) and Grayscale with a final ruling ordering the agency to rescind its denial of the application for a spot BTC ETF. This formal conclusion of the litigation upheld the court’s initial ruling two months ago that the SEC did not act properly in considering an application from Grayscale in its attempt to transform its Grayscale Bitcoin Trust (GBTC) into a spot ETF.

The SEC chose not to appeal the original ruling, making yesterday’s conclusion of the lawsuit a mere formality. The move is now up to the SEC, which may decide to approve Grayscale’s application or deny it on different grounds than before. The SEC is in a difficult position at the moment, having suffered multiple losses in the courts in recent months, and is in the process of making decisions on a number of other spot ETFs.

Bitcoin Dominance Continues to Strengthen

Bitcoin’s dominance indicator, which is determined by the ratio of Bitcoin’s market capitalisation to the market capitalisation of all existing cryptocurrencies, reached its highest value since April 2021 yesterday. Bitcoin’s dominance has reached as high as 54.43% overnight from Monday to Tuesday.

For over two years, BTC’s dominance fluctuated between 39% and 49%, but after the events of the past few weeks, Bitcoin has begun to consolidate its market position. Bitcoin currently has a strong potential for new capital inflows related to the possibility of a spot ETF being approved, which analysts believe could inject hundreds of billions of dollars into it.

However, we have seen similar developments in Bitcoin’s dominance in the past. Prior to the last halving in 2022, BTC’s dominance strengthened by over 13 percentage points in one year.

One of the Best Trading Days of the Year

Trading volumes on the crypto market showed signs of recovery after a long lull. As of early Tuesday evening, trading volumes on the crypto market reached as high as $100 billion, an increase of nearly 130 percent over the past 24 hours, according to data from the Coinmarketcap platform. Trading volumes in 24 hours also reached the highest level in the last month, and according to Coinmarketcap data, this is one of the best trading days of this calendar year.

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