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Bitcoin Surpasses $42,000; Is a Spot Bitcoin ETF Feasible?

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

Author

Jonathan Gibson

Tags

Reading time

2 mins
Last update

Bitcoin

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Bitcoin (BTC) continues to move higher as mainstream media starts to pay attention once again to the largest cryptocurrency in the world. There are multiple positive events that are affecting the sentiment around Bitcoin, including the halving event next year, the possible approval of a spot Bitcoin ETF and large BTC purchases by whales. 

Bitcoin Surpasses $42,000

Bitcoin surpassed $42,000 for the first time in over a year. At UseTheBitcoin we reported that the largest virtual currency in the market was reaching new highs in more than a year. According to CoinGecko, Bitcoin is now being traded above $42,700 and its market capitalization surged to $835 billion. 

Bitcoin Price

Thanks to the most recent price increase, Bitcoin grew by 14% in the last 7 days and the whole crypto market followed. Ethereum (ETH), Binance Coin (BNB), XRP, Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and Tron (TRX) have registered gains that range between 1% and 14%. 

Positive Events Affect Bitcoin 

The most recent price increase is linked to multiple things and events that have also been reported by mainstream media. One of those things is linked to the possible approval of a spot Bitcoin Exchange-Traded Fund (ETF). Several crypto accounts on Twitter are discussing this possibility, especially because Jay Clayton, the former SEC chair, sees progress on that front. 

Another thing that is worth pointing out is that several large crypto whales are purchasing Bitcoin in bulk. For example, the Bitcoin wallet 3KbWiPRCgWkQNW7QE3mkJtBcFD6cSsQE6 has been making daily purchases of 250 BTC. 

BTC Bitcoin Whale

One of the reasons behind those purchases could be related to the fact that next year Bitcoin will experience a new halving event. This halving event will reduce the new issuance of BTC by 50% from 6.25 BTC per block to 3.125 BTC. That will indeed reduce the total Bitcoin issued per day to 450 BTC. 

With a lower Bitcoin issuance and a larger demand from investors and crypto users, it could be more difficult for the market to adjust to those supply and demand shocks, causing Bitcoin to move higher or experience volatility.