Bitcoin Surges Past $34,000: The ETF Effect and Geopolitical Factors

by Ikem Emmanuel

Bitcoin recently made headlines by surpassing the $34,000 mark on October 24th, a level not seen since May 2022. This surge was triggered by a mistaken news report suggesting the approval of a Bitcoin ETF in the United States. However, the reality is that several major players, including BlackRock, VanEck, and Fidelity, have applied for a Bitcoin ETF, but these applications are still under review. Despite the false report, investors remain hopeful that approval is on the horizon, which could significantly impact the cryptocurrency landscape from late 2023 to the first half of 2024.

This enthusiasm is reflected in the increased activity of investors who are optimistic about the potential launch of a Bitcoin ETF. Notably, companies associated with cryptocurrencies, like Coinbase Global, Marathon Digital, and MicroStrategy, saw their stock prices rise in response to Bitcoin’s surge. Even the alternative cryptocurrency Ether experienced an 8% increase in the past 24 hours, reaching a two-month high. It’s evident that the market is keen to see a physical Bitcoin ETF approved. 

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Furthermore, Bitcoin’s recent price hike can be linked to geopolitical tensions, particularly the conflict in the Middle East. The attack by Hamas on Israel has driven up demand for assets like physical gold and Bitcoin, often seen as “digital gold.” Zak Pandle, the managing director of research at Grayscale Investments, has highlighted the role of geopolitical tensions in this surge.

Additionally, Bitcoin’s dominance in the cryptocurrency market reached a two-year high on October 21st, surpassing 50.76%. This dominance index, which indicates market cycles and investor sentiment, tends to rise during market downturns and fall during bull markets. The current increase suggests that long-term investors are favoring Bitcoin and reallocating funds from other cryptocurrencies to purchase more BTC.

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