Bitcoin nears $35,000 mark, buoyed by ETF optimism and Middle Eastern geopolitical risks

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Bitcoin nears $35,000 mark, buoyed by ETF optimism and Middle Eastern geopolitical risks
Credit: © Reuters.

Bitcoin 's ( BTC/USD ) price has seen a minor increase of less than 1% in the past day, reaching approximately $34,450. This is a level it has sustained for about a week, yet still shy of its recent peak of over $35,000. This peak was Bitcoin's highest since the severe bear market in May 2022. Since mid-October, Bitcoin has experienced a surge of around 30%, breaking through the previously stagnant crypto markets characterized by low volatility and trading volumes.

According to Konstantin Shulga from Finery Markets, this rally represents growing investor optimism. Traders are anticipating Securities and Exchange Commission (SEC) approval for spot Bitcoin ETFs, which could spark increased investor interest and accelerate institutional adoption of digital assets.

The digital currency's correlation with gold has been strengthened due to Middle Eastern geopolitical risks, enhancing the "digital gold" narrative. Meanwhile, its link with stock indices like the Dow Jones Industrial Average and S&P 500 has weakened. The Federal Reserve's upcoming monetary policy decision is anticipated to influence these stock indices and Bitcoin which typically follows their trends. The central bank is expected to keep interest rates stable while potentially offering details on future borrowing costs.

In other cryptocurrency news, Ether's price has slightly risen above $1,800. However, smaller tokens such as Cardano and Polygon have seen declines.

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