Bitcoin’s Thrilling Rollercoaster: BTC Soars Above $35,000, ETF Hype Ignites Crypto Frenzy

Buckle up, crypto enthusiasts, because Bitcoin just took us on a wild ride. It’s a flashback to May 2022 when the crypto world was in turmoil, and BTC prices were on a downward spiral. Fast forward to now, and Bitcoin has defied gravity, surging past $35,000 in a matter of minutes.

It all started when Bitcoin crossed the $31,000 mark on a seemingly ordinary Monday. But then, things got exciting. Bitcoin went on a price-hiking spree, racing through $32,000, $33,000, $34,000, and finally, touching the magical $35,000 mark within just a few heart-pounding minutes. It was like a crypto thrill ride that left us all breathless.

Bitcoin hadn’t seen these heights since May 2022, a time when the crypto industry was facing its fair share of scandals, from Terra-Luna to Three Arrows Capital, Genesis, and FTX. The mood back then was gloomy, with BTC’s value plummeting to around $15,000, and some even questioned the industry’s survival.

But guess what? The tables have turned, and it’s all thanks to the buzz surrounding Bitcoin ETFs. These exchange-traded funds, if approved, could make buying BTC a breeze, opening the doors to a broader pool of potential investors. It’s like a crypto party, and everyone’s invited!

Grayscale, which, coincidentally, is owned by Digital Currency Group (just like CoinDesk), currently leads the race in offering an exchange-traded Bitcoin product. However, there’s a catch—it’s structured as a trust, which isn’t ideal. The U.S. Securities and Exchange Commission (SEC) previously said no to Grayscale’s attempt to transform this product into a more attractive ETF. But hold on, the story doesn’t end there. A court recently gave the SEC a good scolding for its decision, and the SEC isn’t planning to appeal. So, there’s a good chance that Grayscale might soon get its hands on that coveted ETF.

And that’s not all! The world’s largest asset manager, BlackRock, has also jumped on the Bitcoin bandwagon. They’ve submitted their own Bitcoin ETF application to the SEC. Other traditional financial firms are following suit, driven by clients worldwide who are eager to dive into the world of crypto. BlackRock CEO Larry Fink even compared crypto to the likes of U.S. Treasuries or gold, saying it could serve as a haven asset for investors.

If you’re wondering just how serious this is, keep in mind that the BlackRock ETF has made an appearance on the website of the Depository Trust & Clearing Corp. This isn’t your usual boring webpage; it displayed the prospective security with a unique ID number called a CUSIP. It’s a step closer to approval and a clear sign that BlackRock is optimistic about the ETF’s future.

But with great excitement comes a bit of turbulence. During Bitcoin’s rapid surge on that memorable Monday, over $167 million in derivative positions were liquidated, adding to the daily total of $344 million. The crypto world was buzzing with activity, but open interest didn’t quite keep up. It dropped from a peak of $10.5 billion to $9.4 billion as a result of liquidations, short positions closing out, and those in long positions cashing in their profits.

There’s also a fascinating development in the options market, as pointed out in Galaxy Digital’s latest market report. When Bitcoin hit around $32,500, “options dealers will need to purchase almost $20 million of BTC for every 1% move up to stay delta neutral.” It’s like a high-stakes game of chess, and the moves are getting more exciting.

So, as the crypto world continues its rollercoaster ride, it’s clear that Bitcoin is the star of the show, and the ETF hype is adding fuel to the fire. Buckle up, because the crypto winter might just be thawing, and the spring of Bitcoin’s resurgence is upon us!