Bitcoin price surpasses $38,000

The world's largest cryptocurrency surged above $38,000 in a few hours, its highest level since May 2022.

From around $36,000 at the beginning of the month, Bitcoin quickly reached $38,000 yesterday afternoon. At one point, this digital currency reached $38,416. Holding the above price for a few hours, Bitcoin then retreated to around $37,800. This threshold is still the highest price range of Bitcoin since May 2022, more than a year and a half.

Ethereum, the second-largest cryptocurrency, also rose more than 3% and is now trading near $2,090 apiece. Crypto-related stocks also rose on the day, with Coinbase up 6%, Stronghold Digital Mining adding 6.4% and Marathon Digital Holdings up 4%.

The price increase comes as investors are expecting the US Securities and Exchange Commission (SEC) to approve a spot Bitcoin exchange-traded fund (ETF). Expert Laurent Kssis said: "With the upcoming approval of the BTC ETF, possibly on January 11 next year, it will create a new wave of volatility for the market."

ETFs allow investors to trade easily without having to hold them directly, at low costs, thereby attracting more cash flow from institutional investors. This group has not been allowed to trade on cryptocurrency exchanges due to legal barriers. Expert Laurent Kssis also predicted that Bitcoin could rise to $40,000 by the end of the week.

The story of the birth of Bitcoin ETFs has been the driving factor of the cryptocurrency market for over a month. Not only has the price increased, this channel has also attracted more capital to pour in. According to investment consulting firm ByteTree, the number of Bitcoins held by investment funds increased this week to 863,434 units, surpassing the previous record high recorded in April 2022. Over the past month, funds have added about 22,100 Bitcoins.

Broader crypto funds have also seen a surge in new inflows in recent weeks. Digital asset manager CoinShares recorded net inflows of $767 million over the past six weeks, the most since the 2021 bull market. Broader funds are those that track and seek returns across hundreds, sometimes thousands, of units.

Major investment banks are also showing increasing interest in the sector. Swiss bank UBS is said to be in touch with three major cryptocurrency ETFs: Samsung Bitcoin Futures Active, CSOP Bitcoin Futures, and CSOP Ether Futures ETF, all authorized by the Hong Kong Securities and Futures Commission. HSBC also previously announced plans to launch digital asset custody services for institutional clients.

Xiao Gu (according to CoinDesk )

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