- Bitcoin attained a 17-month high, spurred by the Federal Reserve’s potential halt on rate hikes, uplifting the global market sentiment.
- The SEC is poised to potentially approve US Bitcoin ETFs, with industry giants like BlackRock Inc. at the forefront of this shift.
- Cipher Mining Inc. reports robust Bitcoin production in October 2023, reinforcing the cryptocurrency’s growing stature as ‘digital gold.’
Recently, Bitcoin, currently trading at $35,290, has been stealing the limelight, scaling new heights, and rekindling optimism among investors. Its remarkable climb to a 17-month high, per The Economic Times, is tied to several factors including, anticipation of a significant shift in the ETF industry, a potential halt to the Federal Reserve’s interest-rate hikes, and an increasing recognition of the cryptocurrency as the digital counterpart to gold.
When steering global financial sentiments, the Federal Reserve never ceases to play a pivotal role. Jerome Powell, the Fed Chair, recently suggested that the market might be seeing an end to one of the most rigorous rate-hiking cycles witnessed in 40 years, according to a CNBC report. This indication has spurred an upswing across various market sectors, including stocks, bonds, and commodities, amplifying Bitcoin’s allure.
“This has been a resilient economy, and I think it’s been surprising in its resilience,” Fed Chair Jerome Powell said on Wednesday after the Fed kept interest rates unchanged for the second straight time. https://t.co/2wTknMZBfy pic.twitter.com/PPEKYqL7Pq
— CNBC (@CNBC) November 1, 2023
But it’s not just macroeconomic signals fueling the Bitcoin fervor. The Securities and Exchange Commission is on the brink of a groundbreaking decision. Should they give the green light to giants like BlackRock Inc. to introduce the inaugural U.S. ETFs directly invested in Bitcoin, it could redefine the cryptocurrency’s mainstream legitimacy. Michael Safai from Dexterity Capital LLC highlights the excitement, according to The Economic Times, noting that while a $35,000 resistance is palpable, the ETF news holds enough steam to propel Bitcoin toward the $37,000 mark.
Per the report, Grayscale Investments LLC’s research team offered another perspective on Bitcoin’s rise. They argued that cryptocurrency is increasingly being viewed as “digital gold.” As more individuals come to appreciate Bitcoin’s inherent value as a non-sovereign monetary system, it solidifies its stance as a worthy digital successor to physical gold.
Lastly, the surge in Bitcoin’s value is mirrored in the mining sector. Cipher Mining Inc., in their recent report, documented a commendable 3% surge in their October 2023 Bitcoin production. This was achieved even as the average network hash rate increased by 9%. Cipher’s mining infrastructure, particularly with the full-scale operation of their Odessa facility, enables them to mine an impressive 14.9 bitcoins daily.
