HomeContributorsFundamental AnalysisCryptocurrency Market Capitalization Sets Year's High

Cryptocurrency Market Capitalization Sets Year’s High

Amid the frenzy over expectations that the SEC will approve applications for spot bitcoin ETFs, the cryptocurrency market capitalization reached USD 1.25 trillion this morning, for the first time in 2023. Expectations have increased following reports that the US Securities and Exchange Commission will not appeal a court ruling that the rejection of Grayscale Investments’ ETF application was improper.

It is important to understand that an ETF is a financial instrument that will allow a wide range of people to easily officially invest in bitcoin without opening an account on a crypto exchange, which can be associated with difficulties and dangers.

Although there has been no official announcement yet, the news background is extremely positive:

→ Blackrock is rumoured to have informed the SEC that it will begin buying BTC for its BTC ETF;

→ Blackrock spot BTC ETF has appeared on the lists of clearing house DTCC with the ticker IBTC.

The growth leader, of course, is bitcoin. Its price reached USD 35k this morning — for the first time since May 2022. Following this, other assets also perked up – in particular, Ethereum, the second most important cryptocurrency, rose above USD 1,800.

The chart shows that ETH/USD:

→ the ETH price is near the upper limit of the downward channel that has been in effect since May of this year;

→ level 1,820 may provide resistance;

→ the price of ETH has exceeded the level of 1,740, which can now provide support.

It is worth noting that when (and if) the application for a bitcoin ETF is officially approved, the price of the coin may even weaken, since the market looks overbought and is already taking into account the effect of what will happen. However, BTC could be followed by a rush for Ethereum ETFs.

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