Here are the main reasons why the price of Bitcoin rose above the $54,000 level

Here are the main reasons why the price of Bitcoin rose above the $54,000 level

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Answer Here are the main reasons why the price of Bitcoin rose above the $54,000 level

The price of Bitcoin skyrocketed at the beginning of October, with Bitcoin currently trading at $54,500.

What are the main reasons behind the rise in the price of Bitcoin:

After the bitcoin price fell, which was affected by the recent Chinese decisions, its most important government institutions met on the decision to ban the trading of cryptocurrencies.

But with the advent of the new month of October, Bitcoin’s trajectory has changed, having spent almost the entire September in flux.

The main possible reason for Bitcoin’s move is the US government’s assertion that it will not follow in the footsteps of China towards cryptocurrencies and will not ban them.

Read:Report: $17 million worth of Bitcoin stolen from users of popular exchanges like Binance

The second reason is the anticipation of the approval of the Bitcoin ETF by the SEC, which according to many observers and analysts, is more imminent than ever.

A Bitcoin ETF, or exchange-traded fund, is an investment product that allows investors to purchase shares representing a digital asset without having to physically deal with the cryptocurrency themselves.

It is a product that does not yet exist in the United States because the Securities and Exchange Commission has repeatedly rejected applications for multiple approvals for this product, citing concerns about price gouging in the cryptocurrency market.

The cryptocurrency industry has been eager for years to get the Bitcoin ETF approved in the US, and the expectation is that when it eventually gets SEC approval, it will cause institutional money to rush into the crypto market, driving the price of Bitcoin higher.

Currently, at least 13 high-profile companies have applied to the SEC to launch a Bitcoin ETF and are currently waiting for a response and answer.

According to ETF experts, it is likely to finally be approved on October 18.

But there is only one problem.

The SEC may only approve an ETF for bitcoin futures, not a fund that tracks the spot bitcoin market.

Read:British Money Regulatory Authority warns against some uses of digital and cryptocurrency

Eric Balchonas, a Bloomberg analyst, said on Twitter, referring to Securities and Exchange Commission Chairman Gary Gensler:

The 40th law futures ETFs (which Gensler loves) are still very active and likely to be on schedule (we think there’s a 75% chance of this ETF being approved in October).

Read:The price of the OCEAN cryptocurrency increased by 30% for this reason?

The Bitcoin futures ETF will allow investors to buy stocks that represent futures contracts (which are bets on the price of Bitcoin going up and down), rather than the digital asset itself.

Such a product has previously been criticized by those in the crypto space for claiming that it is not what investors want.

This is because, as proponents of cryptocurrency say, it will be less liquid and more expensive for both issuers and investors, than the spot product.

Such talk of approval seems to be driving the price of Bitcoin up to this point.

Read also:

The cryptocurrency Shiba advances in the rankings by market capitalization after record weekly gains

Bitcoin price rises to 55 thousand dollars, the highest level since May 2021

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