Crypto Wrap: Bitcoin Hits 5 Month High
The cryptocurrency rallied in the face of financial market volatility.
Cryptocurrency prices surged this week, led by bitcoin, which hit a five-month high. The world’s most valuable cryptocurrency by market cap briefly topped $56,000 on Friday, up 17% from where it stood a week ago.
Bitcoin Prices
Meanwhile, ether surged more than 10% week-over-week to last trade above $3,600, its best level in a month.
Ether Prices
The two top cryptocurrencies have largely been insulated from the recent volatility in traditional financial assets. This has bolstered their safe haven bona fides in some investors’ minds.
Bitcoin, in particular, has also gotten some momentum on growing expectations that the Securities and Exchange Commission could greenlight the first bitcoin exchange-traded fund in the U.S. later this month.
Bloomberg analyst Eric Balchunas believes there is a 75% chance that the SEC approves a futures-based bitcoin ETF in October.
While not the “physically backed” bitcoin ETF that many had hoped for, a futures-based ETF would still be a huge milestone for bitcoin specifically and crypto more generally. It would open the door for many new investors to buy a cryptocurrency in an investment vehicle they are familiar and comfortable with.
It will be interesting to see whether after a potential ETF approval, bitcoin sees another leg up or traders use it as a “sell the news” moment.
We might not have to wait much longer to find out.
