Bitcoin at the border of 45,000 dollars; Why is this upward trend different than usual?
The article you read below is a translation a note By Nick Baker, author of the CoinDesk website.
A few days after Bitcoin reached a peak of $40,000 not seen since early 2022, the price reached $45,000. Following this, pessimists of the market are now apparently changing their views.
About two years ago, the digital currency market was at its peak. The price of Bitcoin had reached almost $70,000 when things went from bad to worse to disaster. After the FTX digital currency exchange scandal, the price dropped to the floor of $15,000.
You probably remember those days!
Since the start of 2023, however, prices have mostly been recovering, although the jumps have been hard-earned, with each rally followed by a pullback. In mid-October, the price was around $27,000, and shortly after, the market exploded; An upward movement that was clearly due to the increase in optimism regarding the approval of the first bitcoin cash ETFs in the United States, as well as the decrease in bank interest rates in this country.
Also read: Everything about Bitcoin ETF in simple words
A friend of mine, who happens to be a cryptocurrency pessimist, texted me on Tuesday saying he was going to buy more Bitcoin. One of my colleagues also recently told people about their interest in digital currencies [بیشتر] He hears But will this situation continue? Are cryptocurrencies once again on the path to becoming ubiquitous?
During my two decades of covering events related to the financial markets, my father always asked me for market predictions, and now I have to disappoint him by saying that I have no idea about the future of digital currencies. We just know that it has been two years since the last time the cryptocurrency market conditions were this bright. That is, the era before the collapse of Celsius, Voyager, Three Arrows Capital, FTX, Genesis and…
FOMO (fear of missing out) mixed with a certain dose of YOLO (you only live once) is probably back in the market right now.
Wall Street enters
It’s not too hard to understand why everyone is suddenly so interested in digital currencies. It’s a big deal that Wall Street giants including BlackRock, Fidelity and Franklin Templeton are trying to launch Bitcoin Cash ETFs in the US.
If US regulators approve these ETFs, anyone with a simple account at a regular brokerage will be able to buy shares of these funds containing Bitcoin, and fortunately, all signs point to approval of these financial products in the near future. For the average American, buying from a stock brokerage is easier and probably more realistic than opening an account at the cryptocurrency exchange Coinbase or learning how decentralized exchanges (DEX) and wallets like Metamask work.
So it seems that the big sales and marketing teams of BlackRock, Fidelity and Franklin Templeton are ready to support Bitcoin ETFs. It’s not crazy to think that this will bring a lot of money into the cryptocurrency market, but whether or not it will result in a sustained uptrend is debatable.