Bull Run: Bitcoin Approaches $38,000, and Ethereum Crosses $2,000

Bitcoin has once again stolen the spotlight in the crypto market as it inches closer to the $38,000 mark, marking its highest peak in over 18 months. 

This surge, amounting to a 7% increase in the last 48 hours, has been attributed to the growing optimism surrounding the imminent approval of a Bitcoin Exchange-Traded Fund (ETF). The fervor around ETFs has also induced a short-squeeze, contributing to the bullish trajectory.

Ethereum, the second-largest cryptocurrency by market capitalization, is not to be outdone. It has surpassed the $2,000 mark for the first time since July, recording an impressive 8% day-over-day surge. 

The entire cryptocurrency market has experienced a notable uptick, with a 5.4% day-over-day increase, bringing the total market capitalization to $1.45 trillion. Noteworthy performers alongside Bitcoin and Ethereum include Cardano (3.2%), Solana (14.3%), and Chainlink (6.04%) in the last 24 hours.

The ETF Buzz: Catalyst for Bitcoin’s Rally

The driving force behind Bitcoin’s recent ascent is the anticipation and optimism surrounding the potential approval of a spot Bitcoin ETF. The speculation gained momentum as BlackRock, the world’s largest asset manager, registered the name “iShares Ethereum Trust” in Delaware, signaling a potential Ethereum ETF application. 

Brian Rudick, a senior strategist at crypto trading firm GSR, emphasized the connection between Bitcoin’s performance and the anticipation of a spot Bitcoin ETF. He said:

“Bitcoin continues to perform well as the market focuses on the U.S. spot ETF approval process.”

According to Bloomberg Intelligence analysts, the excitement around the ETF landscape has been heightened by the recent window for the SEC to approve a spot Bitcoin ETF. 

Even if approvals do not materialize in November, analysts believe there is a 90% chance of approval by January. This has created significant hype, with James Butterfill, head of research at CoinShares, noting the need for caution:

“There is significant hype surrounding the recent comments from Bloomberg regarding the ETF ‘window.’ Admittedly, it is always a little worrying when prices rise so sharply.”

Ethereum Riding the ETF Wave

Ethereum’s surge is notably linked to the developments in the ETF space. Following Nasdaq’s filing for BlackRock’s Ethereum ETF, Ethereum’s price soared past $2,000, reaching $2,100. 

This represents a 9% increase in 24 hours and a 170% surge in trading volume. BlackRock’s filing also disclosed Coinbase Custody Trust Company as the primary custodian once the ETF is approved, adding another layer of legitimacy to the Ethereum market.

“The big star of the day has been Ethereum, following news of BlackRock’s registration of the ‘iShares Ethereum Trust’ name,”

noted David Lawant, head of research at FalconX.

Ethereum Gas Fees Surge Amid ETF Excitement

As the crypto market experiences this bullish momentum, Ethereum’s transactional activity is witnessing a surge in fees. Following BlackRock’s ETF filing, Ethereum gas fees skyrocketed, touching levels last seen in June 2022. Median gas prices hit 270 gwei, driving up the cost of transactions to $60 to $100 for a brief period.

This spike in fees is attributed to heightened demand for block space, fueled by investor sentiment buoyed by BlackRock’s ETF filing. The anticipation of increased institutional participation in Ethereum through ETFs has created a frenzy, impacting both prices and transactional costs.

Nansen analyst Jake Kennis, shared suggesting that on-chain activity may be lagging behind the current price action:

“There is no inclination of on-chain activity increasing alongside it in terms of DAUs and newly funded addresses entering the Ethereum ecosystem,”