Bitcoin reaches a new 2023 high, surpassing its previous peak from 13 months ago.

Bitcoin (BTC), the largest cryptocurrency by market cap, has reached a new high that hasn’t been seen in 13 months. On Thursday, Bitcoin increased by over 3% and reached $31,500, its highest point in 2023 so far. However, as of press time, BTC has fallen and is trading around $31,200 with a 2.45% increase in the past 24 hours.

The price of Bitcoin has been relatively stable recently due to multiple applications for spot Bitcoin ETFs. Currently, there is a general belief that the United States Securities and Exchange Commission (SEC) may approve an application this year. Many believe that the application for iShare Bitcoin Trust ETF by BlackRock (NYSE: BLK) stands a good chance of receiving regulatory approval.

Rachel Lin, the CEO of decentralized derivatives protocol SynFutures, is optimistic about Bitcoin’s potential for upward movement. Lin highlights Bitcoin’s resilience in the $30,000 to $31,000 support range and states:

“Bitcoin’s current trend indicates a promising uptrend phase, currently trading at the $31,000 resistance level. Price projections for Bitcoin suggest an upward trajectory if the price can stay above the current level, potentially surpassing the immediate $32,400 resistance.”

However, Lin adds that a correction down to $27,500 could occur if BTC drops below $29,500.

Bitcoin’s New 2023 High Spurred by ETF Hopefuls

The SEC has recently received several applications for spot Bitcoin ETFs. So far, WisdomTree, Invesco, Fidelity Investments, ARK Invest, Valkyrie, Bitwise, and BlackRock have all submitted filings. While this is BlackRock’s first application, others such as ARK Invest, WisdomTree, Grayscale Investments, and Vaneck have had their applications rejected in the past.

To date, the SEC has rejected all spot Bitcoin ETF applications that have been submitted since the Winklevoss twins, Tyler and Cameron, submitted the first one in 2013. The SEC has consistently turned down these applications, citing inadequate measures to prevent market manipulation and fraud. These rejections have become the basis of a lawsuit between Grayscale and the SEC after the Commission rejected Grayscale’s application. Grayscale CEO Michael Sonnenshein has expressed strong disagreement with the rejection.

Bitcoin’s new 2023 high and projected uptrend are influenced by the increase in spot ETF applications and the sentiment suggesting an approval, particularly for BlackRock. Recently, Bloomberg senior ETF analyst Eric Balchunas gave BlackRock a 50% chance of approval for several reasons, including Grayscale’s chance of winning its lawsuit. Bloomberg’s Intelligence analyst Elliott Stein estimated that Grayscale has a 70% chance of winning its lawsuit against the SEC after an oral argument in court that favored Grayscale.

Another reason for BlackRock’s potential approval is an amendment to its iShares application. The asset management giant recently added a surveillance-sharing agreement (SSA) to address the SEC’s concerns about market manipulation. The agreement will involve other participants and require information sharing to enhance transparency and prevent fraud. Shortly after, the Cboe BZX Exchange followed BlackRock’s lead and also amended its ARK 21Shares to include an SSA.

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