BitcoinBTC and crypto prices soared this week, adding billions to the market as Bitcoin, Ethereum, XRPXRP and Solana prices led the rally (despite fresh fears that Bitcoin could be “killed” by the US government).
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The price of bitcoin edged closer to $40,000 per bitcoin, riding a wave of bullish optimism on Wall Street that was energized by the opening of a $17.7 trillion “window” for a short period of time .
Today, the world’s largest asset manager, BlackRockBLK, pulled the trigger on what one closely watched analyst called “nuclear winter” for price skeptics of Bitcoin, Ethereum and of cryptography.
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“A massive short squeeze occurred overnight on Ethereum. The funding rate is the highest on record and signals complete panic for shorts,” Markus Thielen, Matrixport’s head of crypto research and strategy, wrote in a report following BlackRock’s surprise filing for an ethereum spot exchange traded fund (ETF).
BlackRock’s Ethereum spot ETF filing, which closely follows the Wall Street giant’s landmark Bitcoin spot ETF filing in June, is believed to spark a similar rush into the market as rivals scramble to deposit their own crypto ETFs.
“This is a nuclear winter for everyone who doubted Ethereum,” Thielen wrote. “Market-neutral crypto hedge funds are wreaking havoc with these funding rates. Entries into crypto hedge funds will be a priority for allocators.”
Ethereum has struggled with the broader crypto market since its peak in late 2021, with the collapse of the non-fungible token market (NFTNFT) and the evaporation of interest in a decentralized internet built on the Ethereum blockchain, known under the name web3, weighing on prices. .
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Meanwhile, other market watchers applauded the BlackRock Ethereum ETF news, following reports that the US Securities and Exchange Commission (SEC) has opened a dialogue with the crypto asset manager Grayscale on converting its Bitcoin trust into a full-fledged Bitcoin spot ETF.
“We saw how the crypto market reacted positively to the news of the approval of a spot ETF, and this is another example,” said Simon Peters, crypto market analyst on the trading platform eToro, in emailed comments, adding that it expects the bitcoin price to hit. to continue climbing.
“We broke above the resistance level of $30,000-$31,000, which proved quite troublesome. The next stop is potentially $45,000, the high last seen in March 2022.”
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