Bitcoin's value is on the rise, nearing $28,000 as of Monday, following a 4.5% surge during Asian trading hours. The increase in the cryptocurrency's value was driven by heightened anticipation of a US Bitcoin Exchange-Traded Fund (ETF) approval, following the Securities and Exchange Commission's (SEC) decision not to appeal a court ruling regarding Grayscale's bitcoin trust.
The SEC's non-action could potentially lead to the Grayscale Bitcoin Trust (GBTC) becoming an ETF, a first in the US. This development has prompted traders to predict a further rise in Bitcoin's value.
This follows Sunday's slight increase in Bitcoin's price by 0.10% to $26,900. The cryptocurrency community was excited by the SEC's approval of Grayscale's Bitcoin ETF, announced on Friday night after a significant ruling by a three-judge panel of the Washington DC Court of Appeals. This approval marks a new chapter for the cryptocurrency sector and is expected to unlock substantial value for investors through streamlined share formation and redemption processes, preventing steep discounts to Bitcoin's inherent value.
Bitcoin's price rise is also influenced by the current low inflation environment, indicated by a 0.2% decrease in Consumer Price Index from August figures, and escalating geopolitical tensions. With a trade volume of $4.8 billion and 19,514,125 BTC tokens in circulation—almost reaching its set limit of 21 million tokens—Bitcoin is poised to retest the $30,000 mark, reinforcing its position as a refuge for investors against inflation and market upheaval.
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