- Bitcoin's price and exchange volume have surged on popular crypto platforms, exceeding $24 billion, due to expectations of an approved Bitcoin ETF.
- Bitcoin ETF approval potential has impacted its price and surged activity in Bitcoin investment products.
The crypto world is abuzz with huge developments this week. Bitcoin's price steadiness, the consolidation of altcoins, and substantial growth in BTC spot exchange volumes are changing the crypto space.
Since last week, there have been several notable events surrounding Bitcoin and the crypto market in general — several analysts even predict an imminent end of the bear market.
Now, let's take a dive into the biggest Bitcoin stories of the week that are causing a lot of buzz.
-
Bitcoin Price Holds Steady Above $34K in Weekend Consolidation
The cryptocurrency market is currently in a consolidation phase following a recent surge in Bitcoin's value.
Over the past few days, Bitcoin pushed to reach $35,000, and while there was a slight correction afterwards, it has managed to maintain a price above $34,000. However, it attempted a further surge but could not sustain the upward pressure and currently trades at around $33,874.
Bitcoin's dominance, a metric used to measure its share relative to other cryptocurrencies, stands at 51.2%. This metric provides insight into its overall strength in the market compared to its competitors. Altcoins, which are alternative cryptocurrencies to Bitcoin, are also experiencing a phase of consolidation. While most are showing slight increases, there are exceptions.
Notably, Shiba Inu (SHIB) has seen a 3.3% increase in the past 24 hours, making it the best-performing altcoin among those with larger market capitalization. Render (RNDR) leads among the top 100 coins, showing a 10% increase, followed by BitTorrent (BTT) with a 7.1% increase. Conversely, Roll Bitcoin (RLB) has seen a 9% decrease, while XDC Network (XDC) is down by 4.3% at the time of writing.
-
BTC Price and Spot Exchange Volume Surge Amidst ETF Anticipation
Bitcoin has experienced substantial growth in both price and spot exchange volume. The volume of trades on various popular crypto platforms has now exceeded $24 billion. This surge in activity is attributed to growing expectations of an imminent approval of a Bitcoin Exchange Traded Fund (ETF).
The anticipation of a Bitcoin ETF approval has been a huge driver behind Bitcoin's recent surge to $35,000. Speculations surrounding this approval have fueled market volatility, leading to remarkable increases in daily exchange volumes across major platforms.
Recent reports indicate that this bullish trend in the crypto space has resulted in a surge of spot exchange volumes. The seven-day moving average for spot exchange volume reached levels not seen since March, surpassing $24 billion on October 24.
-
First Bitcoin ETF Trades $1.5 Billion as GBTC Discount Narrows
The potential approval of a Bitcoin ETF has not only impacted Bitcoin's price but also triggered a surge in activity within Bitcoin investment products. ProShares and Grayscale have led this surge, with a notable increase in trading volumes for Bitcoin investment products.
ProShares Bitcoin Strategy ETF (BITO) witnessed substantial trading activity, with $1.7 billion traded in a single week, making it the second-largest week since its launch. Grayscale Bitcoin Trust (GBTC) also experienced increased volume, helping to reduce the discount to the Bitcoin spot price to a two-year low.
It's worth noting that the United States might soon allow a Bitcoin spot price-based ETF, and this development has had a positive influence on the entire ecosystem. In addition to exchanges and mining firms, institutional investment options are experiencing a resurgence in demand.
The data indicates that ETF trading is back in full swing, with implied demand for a spot Bitcoin ETF. Grayscale's product now trades with an implied share price of 13.1% below the BTC spot price, the lowest since November 2021.
In the midst of these developments, investment management firm ARK Invest has adjusted its GBTC holdings as it prepares for a Bitcoin spot ETF launch. GBTC now accounts for 10.24% of ARK Next Generation Internet ETF, marking its first change since November 2022.