BTC Breaks Key $30,000 Level
Bitcoin [BTC] crossed the $30,000 mark during morning trading hours on Friday, extending its weekly gains to over 11%.
The move pushed the world’s largest cryptocurrency above a key psychological level as bullish sentiment around a possible U.S. spot bitcoin exchange-traded fund (ETF) approval gained momentum.
Bitcoin Forks Outpace Majors
Tokens formed by forking Bitcoin’s code led alternative token gains in the past 24 hours, outpacing major tokens.
Bitcoin Cash [BCH] and Bitcoin SV [BSV] jumped as much as 26% to lead gains among alternative cryptocurrencies — a sign of possible irrational exuberance returning to the market.
Regulatory Pressure Mounts on SEC
The rally comes amid fresh activity on the ETF front.
Several ETF providers amended their filings over multiple days in the past week alongside growing pressure on the U.S. Securities and Exchange Commission (SEC) to soften its stance on a bitcoin ETF approval.
Earlier this week, four House Financial Services Committee members urged the SEC to heed the courts and abandon efforts to block bitcoin ETFs in a letter to SEC Chair Gary Gensler.
Grayscale Ruling Lifts Market Confidence
Elsewhere, hopes of the Grayscale Bitcoin Trust (GBTC) being converted into an ETF riled up traders.
GBTC is one of the largest institutional bitcoin holdings, and Grayscale is among several other asset managers who have applied for a spot bitcoin ETF. Other major firms in the race include BlackRock [BLK], Fidelity and WisdomTree [WT].
Traders said a ruling in Grayscale’s favor could tilt overall sentiment bullish and even set the bedrock for a broader market climb.
“Bitcoin has also been encouraged by possible ETF approval and an increasing number of ETF submissions by leading companies,” shared Lucy Hu, senior trader at Metalpha. “The SEC opted for a no-appeal on Grayscale’s ruling, and as the deadline for BTC spot ETF applications from institutions such as Blackrock looms closer, the market’s confidence in ETF approval has increased.”
