Bitcoin is at an 18-month high amid reports that the US Securities and Exchange Commission (SEC) has a six-day deadline to approve or deny ETFs starting today.
Bitcoin price briefly touched $36,700 during the London trading session on Thursday. Bitcoin’s value has increased about 31% in the last month and 93% in the past year.
Other well-known digital assets are also in the green, with ether up 20% last month.
Data shows that about $50 million in liquidations occurred in a four-hour period during the early hours of trading in Asia, creating a “short squeeze” that sent prices higher.
Short selling is an unusual condition that causes a rapid increase in the price of any asset – A short squeeze occurs when the price suddenly increases and the short seller exits their position, leading to a flywheel of buying.
In contrast, Bitcoin struck in the following hours and skyrocketed to nearly $37K. After a brief rejection, the asset issued another price increase that took it to the same level late last night.
However, this time, the bulls were more persistent and pushed the crypto market valuation even further.
Buying pressure increases sharply as it is reported that the US Securities and Exchange Commission opened discussions with Grayscale Investments on the details of the company’s application to convert its GBTC into crypto sport ETF
The SEC’s approval of one or more ETF applications is highly anticipated by the crypto industry, which sees the moment as an important milestone that could ease everyday investors’ exposure to technical asset numbers.
Grayscale has been in contact with both the SEC’s Division of Trading and Markets and the Division of Corporate Finance since winning the case, said the person, who requested anonymity because the negotiations remain confidential.
Grayscale has long had a relationship with the SEC due to the existing Grayscale Bitcoin Trust, but when they sought to launch an ETF that would carry crypto assets directly, the agency refused.
A battle in US federal court ensued, ending with a panel of judges finding that the SEC had refused “arbitrarily and capriciously” and the court ordering the agency to remove his refusal
The court’s ruling was finalized last month, sending the application back to the regulator.
However, Bitcoin miners are smiling as Bitcoin transaction fees reach 5% per month.
According to data from the statistical resource BitinfoCharts, the average BTC transaction fee has reached nearly $6 since November 7.
The supply remains limited, with long-term holders continuing to accumulate Bitcoin with impressive speed.
Glassnode data also highlighted that the spending behavior of short-term holders suggests that a change in the character of the market has now occurred with prices above the $30,000 mark.
This isn’t really surprising as this is also considered a key level in my quarterly outlook.
[Nairametrics]