On Thursday, bitcoin reached a record high for 2023 as excitement over the possible approval of a bitcoin ETF grew.
The leading cryptocurrency’s price increased by almost 3.5% to surpass $37,000 for the first time since May. The last trade price was $36,974. Although it had not changed much, ether was still up recently and trading slightly below the crucial $2,000 barrier.
Clara Medalie, head of research at crypto data provider Kaiko, stated that the spike in the price of bitcoin caused a wave of short liquidation that occurred over night and drove up cryptocurrency values.
The ETF announcement has been a nice diversion from the deluge of negative news that has plagued the cryptocurrency markets over the past year, according to the analyst. “If [an ETF approval] materialises, we might be seeing the beginning of another significant upswing, or we might already be experiencing its full length. Although it is still too early to know if the rise will last, things appear optimistic.
Crypto shares and other assets also profited from the surge in bitcoin prices on Thursday. Solana, one of the cryptocurrency market’s top achievers this year, increased by 11%. The coins linked to Polygon and Cardano saw increases of 3% and 4%, respectively.
Darius Tabatabai, co-founder of the decentralised exchange Vertex Protocol, added, “And as we’ve seen, when bitcoin climbs, ether and other altcoins tend to follow not long after.” “With bitcoin up over 120% year to date, trading volumes are increasing and many other coins are starting to turn positive.”
Before the market opened, Coinbase’s shares increased 3.7%, and Microstrategy, a bitcoin proxy, gained 4.7%. Both cryptocurrency trading platforms, Block and Robinhood, had increases of more than 1% apiece.