Bitcoin (BTC-USD) “hodlers” have faced a challenging journey to maintain faith in cryptocurrency. During bearish trends, it’s tempting to join the detractors. Critics argue Bitcoin is a scam that saw a bubble burst in January 2018. They highlight its lack of regulation and predict government scrutiny will lead to shutdowns.
Soon after, Bitcoin led the way in the crypto market, as all digital assets take cues from it. The Wall Street Journal reported a higher likelihood of the US SEC approving a spot Bitcoin ETF, prompting Bitcoin to surge. It gained almost 12% in one day and over 22% in the past week, surpassing key moving averages.
Here’s why Bitcoin will remain at the top of the cryptocurrency market for the foreseeable future despite what the bears say.
Bitcoin’s Unwavering Resilience
Earlier this year, Bitcoin’s price surged more than 55% following the US banking crisis. The crisis began with the collapse of Silicon Valley Bank on March 10, 2023, leading to a broader banking crisis in the United States. Multiple small to mid-sized banks collapsed within five days, causing global banking sector stocks to plummet and Bitcoin to rise in value significantly.
Recently, Bitcoin is surging despite increased volatility in global markets due to rising 10-year US Treasury yields, crossing the 5% threshold for the first time in 16 years. Typically, such yield increases prompt investors to adjust their portfolios, potentially increasing market instability. However, similar to gold, Bitcoin has lately served as a safe-haven asset during turbulent economic conditions.
Bullishness Around Bitcoin Has Been Building, for Good Reason
Bitcoin’s bullish run this week has positively influenced the broader crypto market. BTC surged over 14% within a week, settling at around $33,700 after reaching yearly highs at $35,000. Its performance aligns with the CoinDesk Market Index, which rose by 14%.
Estimates for a spot Bitcoin ETF’s initial impact and growth vary widely, from $3 billion on the first day to $55 billion over five years. Market experts compare it to the transformation gold ETFs brought to the gold market and anticipate a significant demand surge with the debut of spot Bitcoin ETFs.
Leading players like BlackRock (NYSE:BLK), Fidelity (NYSE:FNF), and crypto-focused companies like Grayscale have filed applications for these ETFs. Plus, the U.S. Securities and Exchange Commission is evaluating multiple submissions. However, no specific decision timeline has been revealed.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
