Bitcoin reached a milestone last Tuesday, surpassing the $45,000 mark for the first time in almost two years. This surge was fueled by increasing optimism surrounding the potential approval of a bitcoin exchange-traded fund and tensions escalating in the Middle East due to Houthi attacks on commercial ships.
The excitement was short-lived, however, as the digital currency experienced a swift reversal, plummeting by as much as 9% to around $41,000. This sudden drop served as a reminder to investors of the inherent risks associated with investing in cryptocurrencies.
Yet despite this setback, Bitcoin concluded the week with a modest 4% gain. Rumors are circulating that the U.S. Securities and Exchange Commission (SEC) is poised to grant approval for the first-ever spot Bitcoin ETF (TSX:EBIT) in the near future, with the positive news creating a bullish atmosphere in the market.
Adding to the positive momentum, reports suggest that Goldman Sachs (NYSE:GS) is currently engaged in talks to assume the crucial role as an "authorized participant" for BlackRock (NYSE:BLK) and Grayscale's bitcoin ETFs. This development, if confirmed, could have significant implications for the future of cryptocurrency investments.