Crypto prices experienced a significant surge this week, witnessing a 0.0% decrease in Bitcoin (BTC) value. The market saw a substantial increase, adding billions in valuation, led by Bitcoin, Ethereum, XRP, and Solana. Notably, this rally unfolded amidst concerns that the U.S. government might pose a threat to Bitcoin’s existence.
Bitcoin’s price neared the $40,000 mark, riding a wave of optimism from Wall Street. This surge was further propelled by a temporary $17.7 trillion “window” opening. BlackRock, the world’s largest asset manager, has now made a strategic move that some analysts describe as a “nuclear winter” for skeptics of Bitcoin, Ethereum, and crypto prices.
Matrixport’s head of crypto research and strategy, Markus Thielen, highlighted a significant overnight short squeeze in Ethereum, indicating heightened panic among short sellers. The funding rate reached its all-time high, leading to substantial gains for market-neutral crypto hedge funds.
Thielen emphasized the impact of BlackRock’s surprise Ethereum spot exchange-traded fund (ETF) application, suggesting that this move could trigger a rush to the market, with competitors scrambling to file their own crypto ETFs.
Despite Ethereum facing challenges in tandem with the broader crypto market since its peak in late 2021, including the decline of the non-fungible token (NFT) market and waning interest in a decentralized internet (web3) built on the Ethereum blockchain, BlackRock’s Ethereum ETF news garnered positive reactions.
The recent dialogue between the U.S. Securities and Exchange Commission (SEC) and crypto asset manager Grayscale regarding the conversion of its Bitcoin trust into a full-fledged Bitcoin spot ETF further fueled market enthusiasm.
Market analysts, such as Simon Peters from trading platform eToro, expressed optimism, anticipating continued growth in the Bitcoin price. Breaking through the challenging $30,000-$31,000 resistance level was seen as a positive sign for the market.