Oct 26, 2023 - Economy

Bitcoin price flirts with level before the crypto bust

Data: CoinGecko; Chart: Axios Visuals

Bitcoin is tantalizingly close to breaking past its price from just before the terra usd stablecoin melted down in May 2022.

Why it matters: It's a sign that the world's biggest cryptocurrency may have shaken off the bad news. And as the bellwether for the whole crypto industry — when bitcoin rises, every other coin and token tends to rise with it.

By the numbers: As of Thursday afternoon, bitcoin is trading at $34,122. It briefly touched $35,000 Monday on CoinGecko, but it has largely hovered just below.

  • CoinGecko is putting its seven-day rise at 18.4%.
  • To recover from Terra, though, it will need to hold a level near $37,000 (where it stood just before Terra's collapse). It's not there yet.

What's happening: The consensus is that people are anticipating a spot bitcoin ETF finally getting approved.

  • Gold ETFs coming in 2004 were a game changer for that asset's price, as Matt Hougan of Bitwise noted in a social media post.

What they're saying: "Rumors are flying since the appearance of BlackRock's bitcoin spot ETF ticker on a list at the Depository Trust & Clearing Corporation (DTCC), including that the world's largest asset manager has already started purchasing bitcoin for the fund," Stefan Rust, CEO of data aggregator Truflation, said in a statement.

Yes, but: James Butterfill, the head of research at CoinShares, pointed in a recent blog post to more muted inflows of capital into bitcoin, compared to prior rounds of ETF excitement.

Go deeper: Open interest in bitcoin derivatives are piling up

Editors note: This story has been corrected to reflect the proper attribution of the inflows data.

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