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Bitcoin’s value soared by more than 12%, surpassing the $34,000 mark, marking an all-time high in 2023. Ethereum also experienced a rally, with the second-largest cryptocurrency by market capitalization increasing by 7%, reaching over $1,800.
This double-digit increase in Bitcoin’s price is a result of several favorable developments in the cryptocurrency space, reinvigorating investor confidence. Notably, on Monday, the iShares Spot Bitcoin Trust shares began trading on the Depository Trust & Clearing Corporation (DTCC), making it the first Bitcoin investment vehicle to be listed on this significant clearinghouse.
In addition to this, the Securities and Exchange Commission (SEC) approved a rule change that permits the trading of the Grayscale Ethereum Futures Trust ETF, underscoring the growing regulatory acceptance of crypto-based financial products.
The liquidation of approximately $310 million in Bitcoin short positions within the past 24 hours likely contributed to the momentum in Bitcoin’s surge. The cryptocurrency broke through critical resistance levels after gaining traction above $30,000.
The reclamation of the $30,000 level by Bitcoin seems to have triggered a surge in buying pressure, forcing short sellers to cover their positions, as pointed out by Petar Jovanović.
Ethereum also benefited from the bullish sentiment, surpassing Bitcoin in terms of percentage gains with its 7% increase. The approval of a futures-based ETF product tied to Ethereum is viewed as a positive step for the smart contracts platform.
The widespread rally in top cryptocurrencies by market capitalization on Tuesday signifies a rebound from a challenging 2022 and 2023 for the cryptocurrency market. While regulatory and macroeconomic risks still exist, the recent price action indicates that traders are regaining confidence in digital asset markets.
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