Bitcoin experienced a brief surge to a fresh 17-month high Wednesday (Nov. 1) before retreating from the $35,000 mark.
The cryptocurrency jumped around 1.5% to $35,185 early Wednesday in New York, surpassing the most recent high set last week and reaching its highest price since May 2022, Bloomberg reported Wednesday. However, it later stabilized at $34,600.
The surge indicated an intensifying battle between crypto bulls and bears in the derivatives market, according to the report.
The $35,000 price level has been a significant resistance point for the past 10 trading sessions, Teong Hng, CEO of crypto investment firm Satori Research, said in the report.
Bitcoin’s recent rally of 28% in October, the largest monthly increase since January, was driven by expectations that the U.S. Securities and Exchange Commission (SEC) might finally approve exchange-traded funds (ETFs) directly investing in the cryptocurrency after years of consideration, according to the report.
Last Monday, bitcoin, which is the largest cryptocurrency by market cap, surged more than 11% as traders speculated that the potential listing of a ticker for a proposed BlackRock fund indicated imminent approval, the report said.
The current market movement is a reaction to bitcoin’s rapid climb past $35,000 last week, Michael Safai, a partner at proprietary trading firm Dexterity Capital, said in the report. Although resistance has strengthened at this level, the news surrounding ETFs has generated enough momentum to potentially push the price towards $37,000, Safai said, per the report.
Traders are also closely monitoring Wednesday’s Federal Open Market Committee (FOMC) meeting for any surprises that could impact Bitcoin’s price, according to the report. Any additional pressure on options and forced liquidations is expected to provide support in the coming days.
Companies like BlackRock and Fidelity have been vying to become the first to offer U.S. spot bitcoin ETFs, and crypto proponents say these products would lead to greater adoption of digital assets.
However, SEC Chairman Gary Gensler has expressed strong opposition to a spot ETF, saying in 2021 that the “markets for actual bitcoin itself today are largely unregulated,” in a letter to pro-crypto Rep. Tom Emmer, R-Minn.
“The lack of regulatory oversight and surveillance leads to concerns about the potential for fraud and manipulation,” Gensler said at the time.