Bitcoin reached a trading price of $34,596.40 on Tuesday morning, breaching the $34,000 level and attaining its highest value since May of the previous year.
This surge is fueled by growing optimism surrounding the potential approval of a Bitcoin ETF.
Read more: Bottoms up: Bitcoin not staying at current price range
With a significant 9.8 percent increase in the past week, Bitcoin achieved its most substantial weekly gains since June 2023. Traders are actively speculating on the potential approval of the first U.S. ETFs that directly invest in Bitcoin, which is expected to occur in the upcoming weeks.
On Monday, the price of the largest digital asset experienced a notable daily increase of 12.56 percent, marking its highest daily surge in quite some time.
As a result of this upward movement, Bitcoin reached a market value exceeding $628.3 billion, accounting for roughly 52.16 percent of the total market value of cryptocurrencies.
Data compiled by Bloomberg indicates that over the past five years, weekly gains of a similar magnitude have typically preceded an average 10 percent increase in Bitcoin over the subsequent month.
The token experienced a nearly 4 percent rise, reaching a peak of $30,977.
On Monday, smaller cryptocurrencies also saw gains, with Ethereum rising by 4 percent to reach $1,706.
Speculation or reconsideration
The Securities and Exchange Commission (SEC) has long shown resistance towards approving ETFs related to Bitcoin, citing concerns about fraud and market manipulation. However, recent requests from major investment firms have fueled speculation that the regulatory agency may reconsider its stance.
Anticipation surrounding a Bitcoin ETF intensified following a court ruling in favor of Grayscale Bitcoin Trust, allowing the massive GBTC bitcoin fund to potentially transform into an ETF.
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