Bitcoin's 'Anti-Gravity' Surge Approaches the ETF Approval Finish Line
With the onset of the Asian trading session, Bitcoin has witnessed an impressive 12% surge, igniting discussions among industry experts and analysts who find historical parallels with the early days of the Gold ETF and beyond.
Bitcoin (BTC) displayed a brief and notable rally, momentarily breaching the $35,000 threshold towards the end of the U.S. trading day. As trading continued into the Asian market hours, it maintained a steady course towards $35,000, reflecting an overall 12% increase.
According to data from Bitsday Indices, Bitcoin's current trading price exceeds $34,000. Additionally, the Bitcoin Trend Indicator indicates a "significant uptrend." This surge in Bitcoin's price is intrinsically tied to the long-awaited approval of a Bitcoin ETF, a development of great significance.
In a detailed report, Bernstein has attributed this bullish momentum, which successfully propelled Bitcoin beyond the critical resistance level of $31,000, to the listing of BlackRock's Bitcoin ETF on the Depository Trust Clearing Corporation with the ticker symbol $IBTC.
Jack Tan, representing Woo Network, has expressed a bullish sentiment, characterizing Bitcoin's current phase as "anti-gravity" and foreseeing a potential surge to $75,000 in the months ahead. Tan believes that the sudden price spike is merely a glimpse of what could transpire if ETFs obtain regulatory approval. Notably, he underscores that a significant portion of the expected impact on Bitcoin's price has already been priced in, particularly since the digital currency was trading around $25,000 in February. A contributing factor to this optimism has been the diminishing discount of the Grayscale Bitcoin Trust (GBTC), which had narrowed to 16% by the close of the previous Friday.
Tan also highlights the differing behavior of altcoins, which tend to align more with the movements of technology stocks, lacking Bitcoin's flight-to-safety characteristics. His forecast is that both Bitcoin and Ethereum will outperform altcoins, with Ethereum eventually catching up to Bitcoin.
David Lo, Head of Financial Products at Bybit, further supports this sentiment. He points out that Bitcoin has been the principal beneficiary of these favorable catalysts, resulting in an increase in Bitcoin's dominance. This rise in dominance levels, not seen since early 2021, has resulted in Bitcoin's market share growth at the expense of Ethereum and stablecoins. Nevertheless, Lo cautions that the Grayscale Bitcoin Trust (GBTC) may encounter selling pressure as the discount gap narrows, potentially prompting those who had initially purchased at a 40% discount to consider selling at current price levels.
Quinn Thompson, Head of Capital Markets and Growth at Maple Finance, draws a compelling parallel between Bitcoin and gold, viewing Bitcoin as the contemporary equivalent of the precious metal. In his view, Bitcoin serves as a secure haven for investors seeking refuge amid economic uncertainties, aligning with BlackRock CEO Larry Fink's depiction of the recent crypto surge as a "flight to quality" amid global challenges.
Thompson further emphasizes the consistency of this narrative with comments made by Paul Tudor Jones, underscoring the notion that gold served a similar purpose two decades ago, which Bitcoin is fulfilling today. He believes that Fink wouldn't publicly endorse Bitcoin unless the SEC was likely to approve his ETF application.
Read more: Turning the Tides: Hong Kong's Revised Approach to Spot Crypto and ETF Investments, With a Twist