Bitcoin ETF is back in the spotlight as the cryptocurrency consolidated around $34,500 after briefly surpassing $35,000. The digital currency gained 12% in the past 24 hours, with analysts attributing the jump to BlackRock listing its Bitcoin ETF on the Depository Trust & Clearing Corp. database. This proactive approach by BlackRock suggests their readiness to trade once approved by the SEC, boosting optimism for approval. Bitcoin is now back to levels last seen in May 2022 before negative events affected its value.
BlackRock’s Bitcoin ETF and its impact on the market
The listing of BlackRock’s Bitcoin ETF on the Depository Trust & Clearing Corp. database has been a significant factor in the recent surge in Bitcoin’s value. This move indicates that the world’s largest asset manager is prepared to trade the ETF once it receives approval from the SEC. The possibility of a Bitcoin ETF has been a topic of discussion for years, and BlackRock’s involvement has only intensified the anticipation.
The fear and greed index, which is used to track investor sentiment, has now entered the “greed” stage for the first time since mid-July. Readings above 60 indicate market sentiment is greedy, while below 40 indicates fear. The index shifted from “neutral” to “greed” after Bitcoin reached a 16-month high.
Binance’s executive departures
In other cryptocurrency news, Binance, the world’s largest crypto exchange, lost its head of U.K. operations last month. Jonathan Farnell, who also served as CEO of Binance’s payment service Bifinity, left the firm in September. The departure follows a series of high-level executives leaving the exchange. Binance thanked Farnell for his contributions and wished him well. Farnell joined Binance in May 2021 and later became CEO of Eqonex, the holding company of crypto custodian Digivault.
Impact on Binance
The departure of key executives from Binance raises questions about the exchange’s stability and future growth. With the loss of Farnell, Binance will need to find a new leader for its U.K. operations and payment service Bifinity. While the company has expressed gratitude for Farnell’s contributions, the recent departures may create uncertainty among investors and users of the platform.
Bearish bets on Bitcoin prove costly
As Bitcoin’s value surged past a critical resistance level, bearish bets on the cryptocurrency have cost traders over $178 million in the past 24 hours. Bitcoin futures accounted for nearly 50% of the $400 million in crypto liquidations, while ether futures saw $50 million in liquidations. Liquidation occurs when an exchange forcibly closes a leveraged position due to insufficient funds to meet margin requirements.
This recent surge in Bitcoin’s value, driven in part by the potential approval of a Bitcoin ETF, has caught many traders off guard. Those who bet against the cryptocurrency’s rise have experienced significant losses as a result.
Conclusion
The recent surge in Bitcoin’s value can be attributed to several factors, including the potential approval of a Bitcoin ETF by BlackRock and the shifting investor sentiment as measured by the fear and greed index. The departure of high-level executives from Binance, however, raises questions about the stability of the world’s largest crypto exchange. As the market continues to evolve, investors and traders alike will need to keep a close eye on these developments to make informed decisions about their cryptocurrency investments.
