One of the possible reasons is the possible approval of BlackRock’s Bitcoin spot ETF.
The price of Bitcoin has surpassed $35,000 for the first time since early May 2022, so there are several reasons beyond mere speculation. Below are the top five.
BlackRock Bitcoin Spot ETF Approval Gains Big Importance
The epicenter of this rise is the possible approval of BlackRock’s Bitcoin spot ETF. These speculations were fueled by a revelation from Scott Johnsson, a respected financial lawyer at Davis Polk. He noted, “So two things caught my attention from iShares (Blackrock)’s latest S-1 amendment: They got a CUSIP in preparation for a launch. They may be looking to generate cash this month.”
This sentiment was further amplified by an image circulating on X, highlighting the listing of BlackRock iShares Bitcoin Trust on the Depository Trust & Clearing Corporation (DTCC) under the symbol IBTC. Adding depth to these rumors, Bloomberg’s Eric Balchunas commented, “The iShares Bitcoin Trust has been listed on the DTCC. And the symbol will be $IBTC. Again, it’s all part of the process of bringing an ETF to market.”
However, Bloomberg’s James Seyffart sounded a note of caution, mentioning that “There is no set time. In theory, it could literally be days, months or years.”
Grayscale ETF Dispute Reaches Conclusion
Yesterday the D.C. Circuit Court of Appeals ended the court case, forcing the SEC to review its earlier decision rejecting Grayscale’s proposal to transition its Grayscale Bitcoin Trust (GBTC) to a spot ETF. This confirms its preliminary ruling two months earlier, in which it criticized the SEC’s refusal as “arbitrary and capricious.”
The onus now shifts back to the SEC, leaving it with the option of sanctioning Grayscale’s application or rejecting it on alternative grounds. This event enhances the narrative suggesting an imminent timely approval of the ETF by the SEC.
Bitcoin Short Sellers Are Squeezed
A large part of the market was caught on the wrong foot. Data from Coinglass reveals that a whopping $161 million in BTC futures shorts were liquidated yesterday, with an additional $35 million already today.
Joe Consorti, market analyst at The Bitcoin Layer, commented, “When Bitcoin rose to $31,000, there was a notable buildup of futures positions, reminiscent of the rally we saw from $25,000 to $30,000 in late June. Leverage-driven price surges can be precarious, similar to structures built on unstable ground.”
Emergence of TWAP Purchase and Coinbase Premium
In an analysis that has intrigued many in the crypto community, Skew, a highly respected analyst, highlighted that “There is a discernible TWAP buyer that has been active since Bitcoin hit around $30.6K.” “The impact of this TWAP purchase on the price trajectory seems more pronounced this time,” Skew noted.
Skew also pointed out that “If we take a look at the order book, there appears to be a slight bias towards higher requested liquidity around $37,000.” This observation aligns with the thoughts of CryptoQuant CEO Ki Young Ju, who commented on the sudden rise in BTC Coinbase premium: stating “BTC Coinbase premium just skyrocketed.”
Maximum Pain for Gamma Shorts in the Options Market
Yesterday, NewsBTC reported an important insight: the way options market makers were positioning themselves in Bitcoin had the potential to increase the intensity of any upward Bitcoin price trajectory in the near term. Alex Thorn, head of firm-wide research at Galaxy, pointed to Amber’s data and explained: “At $32.5k, market makers need to buy $20 million of delta for every subsequent 1% move.”
By Leonardo Pérez
