After the sell-off of 2022, bitcoin price has increased 129% from the beginning of 2023 to date...
The bitcoin price is approaching the $38,000 mark, a price last seen in May 2022, amid a virtual currency rally based on expectations that US authorities will soon allow the establishment of exchange-traded funds. spot exchange (ETF) invests directly in bitcoin - a move that could sharply increase demand for the world's largest digital currency.
According to data from Coinmarketcap.com at 11:00 a.m. today (November 16) Vietnam time, bitcoin price traded at nearly 37,440 USD, up nearly 6% compared to 24 hours ago and up nearly 2.6 % in the past 1 week. Before that, there was a time when the bitcoin price reached more than 37,840 USD, the highest in the past 1 and a half years.
After 2022's sell-off, bitcoin prices have increased 129% from the beginning of 2023 to date. The increase in bitcoin price also caused many other virtual currencies to increase, such as the second largest coin, ethereum, increased by more than 4% within 24 hours, reaching more than 2,050 USD.
On November 15, the US Securities and Exchange Commission (SEC) once again postponed a decision on whether or not to approve the establishment of an ETF to invest directly in bitcoin investments in the US. However, Bloomberg news agency believes that by January 2024, the SEC will license the establishment of a series of such funds.
The launch of spot bitcoin ETFs will allow both institutional and individual investors to play Bitcoin more easily without having to directly buy this virtual currency. Instead, investors will put money into the ETF and the ETF will buy bitcoin.
In addition, the virtual currency market also benefits when investors believe that the US Federal Reserve (Fed) has completed the interest rate hike cycle starting in March 2023. If the Fed stops raising interest rates and soon moves to cut interest rates, liquidity levels in financial markets will improve, creating conditions for assets to increase in price.
“The recovery in virtual currency prices could continue if interest rates peak and investors continue to see progress toward spot bitcoin ETFs being approved in the US,” said Zach Pandl, director of Research director of virtual currency investment fund management company Grayscale Investments - commented in a report.
Bitcoin's recent strong rise - with an increase of about 40% in just the past month - has caused many speculators who shorted this virtual currency to close their positions. According to data from Coinglass, within 24 hours last Friday, more than $78 million in bitcoin short positions and $52.5 million in ethereum short positions were liquidated
A difficult question for virtual currency investors at this point is whether this year's rise in bitcoin's price has fully reflected the potential impact of spot bitcoin ETFs - if such funds are established - or not. Not yet.
According to CEO Sui Chung of digital asset index provider CF Benchmarks, the possibility of the SEC allowing the establishment of spot bitcoin ETFs may already be fully reflected in the bitcoin price, but the question is whether these funds will How to attract capital? Speaking to Bloomberg, Mr. Chung said that the benefits of portfolio diversification are the main content of conversations about bitcoin investment, because in the long term, this asset has no correlation with other assets. other than stocks.
Also according to Bloomberg, virtual currency traders in Asia, especially in Korea, are the main force in the ongoing price increase. Data from CCData shows that the market share of virtual currency exchanges located in Korea increased to 12.9% globally this November, from just 5.2% in January this year. This increase in market share coincided with increased trading volume on virtual currency exchanges in Korea in October and November.
“Virtual currency exchanges in South Korea have played a key role in the recent increase in centralized trading activity,” said CCData communications director Jamie Sly, and further revealed that Upbit is the exchange that accounts for the majority of virtual currency transactions in Korea.
The bitcoin price is approaching the $38,000 mark, a price last seen in May 2022, amid a virtual currency rally based on expectations that US authorities will soon allow the establishment of exchange-traded funds. spot exchange (ETF) invests directly in bitcoin - a move that could sharply increase demand for the world's largest digital currency.
According to data from Coinmarketcap.com at 11:00 a.m. today (November 16) Vietnam time, bitcoin price traded at nearly 37,440 USD, up nearly 6% compared to 24 hours ago and up nearly 2.6 % in the past 1 week. Before that, there was a time when the bitcoin price reached more than 37,840 USD, the highest in the past 1 and a half years.
After 2022's sell-off, bitcoin prices have increased 129% from the beginning of 2023 to date. The increase in bitcoin price also caused many other virtual currencies to increase, such as the second largest coin, ethereum, increased by more than 4% within 24 hours, reaching more than 2,050 USD.
On November 15, the US Securities and Exchange Commission (SEC) once again postponed a decision on whether or not to approve the establishment of an ETF to invest directly in bitcoin investments in the US. However, Bloomberg news agency believes that by January 2024, the SEC will license the establishment of a series of such funds.
The launch of spot bitcoin ETFs will allow both institutional and individual investors to play Bitcoin more easily without having to directly buy this virtual currency. Instead, investors will put money into the ETF and the ETF will buy bitcoin.
In addition, the virtual currency market also benefits when investors believe that the US Federal Reserve (Fed) has completed the interest rate hike cycle starting in March 2023. If the Fed stops raising interest rates and soon moves to cut interest rates, liquidity levels in financial markets will improve, creating conditions for assets to increase in price.
“The recovery in virtual currency prices could continue if interest rates peak and investors continue to see progress toward spot bitcoin ETFs being approved in the US,” said Zach Pandl, director of Research director of virtual currency investment fund management company Grayscale Investments - commented in a report.
Bitcoin's recent strong rise - with an increase of about 40% in just the past month - has caused many speculators who shorted this virtual currency to close their positions. According to data from Coinglass, within 24 hours last Friday, more than $78 million in bitcoin short positions and $52.5 million in ethereum short positions were liquidated. The retreat of short sellers sent bitcoin prices soaring at that time.
A difficult question for virtual currency investors at this point is whether this year's rise in bitcoin's price has fully reflected the potential impact of spot bitcoin ETFs - if such funds are established - or not. Not yet.
According to CEO Sui Chung of digital asset index provider CF Benchmarks, the possibility of the SEC allowing the establishment of spot bitcoin ETFs may already be fully reflected in the bitcoin price, but the question is whether these funds will How to attract capital? Speaking to Bloomberg, Mr. Chung said that the benefits of portfolio diversification are the main content of conversations about bitcoin investment, because in the long term, this asset has no correlation with other assets. other than stocks.
Also according to Bloomberg, virtual currency traders in Asia, especially in Korea, are the main force in the ongoing price increase. Data from CCData shows that the market share of virtual currency exchanges located in Korea increased to 12.9% globally this November, from just 5.2% in January this year. This increase in market share coincided with increased trading volume on virtual currency exchanges in Korea in October and November.
“Virtual currency exchanges in South Korea have played a key role in the recent increase in centralized trading activity,” said CCData communications director Jamie Sly, and further revealed that Upbit is the exchange that accounts for the majority of virtual currency transactions in Korea.