Bitcoin edges closer to $38,000 USD due to hope for Bitcoin ETF.

Bitcoin is edging closer to the $38,000 mark, reaching a new high not seen since May 2022. Investors are eagerly anticipating the launch of the Bitcoin ETF, which has sparked much excitement in the market.

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The world’s largest cryptocurrency has increased by 6% in the past 24 hours, reaching $37,843 USD on the morning of November 16. Compared to the low point in 2022, Bitcoin has increased by 129%. Numerous smaller cryptocurrencies have also experienced significant gains.

On November 15, the U.S. Securities and Exchange Commission (SEC) once again delayed its decision on a Bitcoin ETF fund. However, Bloomberg Intelligence expects the SEC to give the green light to this fund in January 2024. ETF funds will make it easier for institutions and individual investors to access the Bitcoin market.

In addition, the expectation that the Federal Reserve will end the interest rate hike cycle has also contributed to the support of the cryptocurrency market, which is highly sensitive to liquidity fluctuations in the financial market.

“The recovery trend in the cryptocurrency price could continue if interest rates peak and we continue to see progress on Bitcoin ETFs in the U.S.,” wrote Zach Pandl, Research Director at cryptocurrency provider Grayscale Investments LLC, in a report.

One thing that investors need to consider is whether the Bitcoin price rebound has already reflected the impact of the spot Bitcoin ETFs.

The adoption of spot Bitcoin ETFs may have been priced in, and the next question is how much capital these funds will attract, said Sui Chung, CEO of CF Benchmarks.

The benefits of portfolio diversification are also part of the discussion on Bitcoin investment when considering Bitcoin’s weak correlation with assets such as stocks over the long term, he added.

Vu Hao (According to Bloomberg)

SOURCEvietstock
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