Bitcoin, the leading cryptocurrency, has made a notable resurgence, surging to a peak of $26.5K within the past few hours, marking a 5% increase in its daily chart. This bullish movement has also been accompanied by a remarkable 30% rise in its 24-hour trading volume over the same time frame.
According to insights provided by the analyst firm Santiment, the Bitcoin network has witnessed a resurgence in activity, with 1.1 million daily addresses actively engaging on the $BTC network, a figure not seen in the past five months. However, today has seen a wave of profit-taking among traders following yesterday’s mild uptrend.
Bitcoin’s resurgence has also influenced other cryptocurrencies, with assets like Bitcoin Cash (BCH) surging by 12%, Toncoin gaining 11% in the 24-hour chart, and TRON (TRX) experiencing a 6% increase. Despite this, there remains a sense of cautious optimism in the market.
While Bitcoin briefly dipped below $25,000 on Monday, the lowest level since mid-June, it has managed to rebound and is currently trading at $26,111.02. Nonetheless, the cryptocurrency market continues to face challenges, with concerns arising as the seasonal worries of September take hold.
Bitcoin remains vulnerable around key technical levels, and its ability to sustain levels above $26,000 remains a point of interest for market participants.
Bitcoin Price Driving Factor
A driving factor behind this surge is the news that asset management giant Franklin Templeton has submitted an application to the United States Securities and Exchange Commission (SEC) on September 12, seeking approval to launch a spot Bitcoin exchange-traded fund (ETF).
This application comes on the heels of the SEC’s recent delays in decisions regarding spot ETF applications from several other major players in the industry, including WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco, which were postponed on August 31.
Additionally, a court ruling on August 29 mandated that the SEC consider Grayscale’s application to convert its Bitcoin futures ETF into a spot ETF.
Franklin Templeton’s proposed ETF would be structured as a trust, with Coinbase serving as the custodian for Bitcoin holdings and the Bank of New York Mellon handling cash custody and administrative duties. The fund’s shares are slated to be traded on the Cboe BZX Exchange. The SEC is set to decide on this application by October 16.
However, Franklin Templeton acknowledged the inherent risks associated with the regulatory uncertainty surrounding the digital asset markets in the U.S. in its application. It cited potential adverse legislative or regulatory developments that could impact the value of Bitcoin and the ETF shares, such as bans, restrictions, or onerous conditions related to various aspects of the cryptocurrency ecosystem.
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