Bitcoin - at the highest level since last May

The price of Bitcoin rose yesterday to the highest level since May of last year, in a positive climate in the crypto market, fueled by the prospects of the launch of an ETF with asset backing Bitcoin spot, according to international media.

According to CoinMarketCap, at 13:00 yesterday, the price of the world's most popular cryptocurrency was $34,490, up 13% in the previous twenty-four hours. Ethereum was trading at $1,835, its highest level in two months, with the crypto asset up 10% in the previous twenty-four hours.

Ryan Rasmussen, an analyst at Bitwise Asset Management, told CNBC: "The real catalyst that pushed Bitcoin above $34,000 was the liquidation of $167 million worth of short positions in mainly at offshore exchanges (n.r. from outside the United States). I don't think anyone expected the price dynamics we're seeing, and investors who were betting on Bitcoin falling above $33,000 are certainly suffering."

Expectations for the launch of a Bitcoin ETF have risen after a US court ruled in favor of crypto asset manager Grayscale against the Securities and Exchange Commission (SEC) in its bid to convert the Bitcoin fund Trust (GBTC) in an ETF, according to CNBC. The commission did not appeal the decision by the deadline, which brought hope to the market that an ETF linked to Bitcoin could be approved in the next few months, the American publication also writes.

According to Cointelegraph, Bitcoin's price appreciation also came amid the latest developments related to BlackRock's proposed spot Bitcoin ETF. The instrument, called the iShares Spot Bitcoin ETF, appeared on the website of the Depository Trust & Clearing Corporation, which deals with the settlement of Nasdaq market transactions. The ETF hasn't received the green light from the SEC, but investors increasingly believe it's just a matter of time.

A Bitcoin ETF would allow investors to gain exposure to the cryptocurrency's price movements without directly owning it. This is because Bitcoin is considered an extremely volatile asset, with very unpredictable fluctuations. Recently, major financial institutions such as BlackRock, Invesco, Fidelity and Grayscale have been pushing to launch Bitcoin ETFs and have filed applications with the US Securities and Exchange Commission to obtain authorization to sell such assets. Financial institutions have touted Bitcoin ETFs as safer investment options compared to direct crypto investments, known for their speculative nature and price volatility, according to CNBC.

The Bitcoin price reached an all-time high of over $65,000 in November 2021, only to drop to a low of around $16,000 later, including against the background of events such as the bankruptcy of Sam Bankman-Fried's FTX exchange.