Bitcoin (CRYPTO: BTC) investors have enjoyed a strong week, with more gains coming in over the past 24 hours.
One Bitcoin is currently worth US$49,400 (AU$67,670). That’s up 4% since this time yesterday and up 16% over the past full week.
That puts its market cap back close to the trillion dollar mark, currently at US$931 million.
Ethereum (CRYTPO: ETH), the world’s number 2 crypto by market valuation, has been trending higher too. Ether is up 1% over the past 24 hours and 15% over the past 7 days.
Ethereum, and most other cryptos, often gain when Bitcoin goes up.
So, what’s driving the recent surge in price for the world’s biggest crypto?
US ETF rumblings
This week, United States Securities and Exchange Commission (SEC) Chair Gary Gensler indicated that crypto investors should be entitled to the same kinds of safety measures in place for traditional investments, like share markets.
That’s particularly relevant with the total crypto market valuation is approaching the US$3 trillion mark.
One method Gensler mentioned to help regulate the crypto market and open the door to non-tech savvy investors is a US listed Bitcoin ETF. The current proposal still envisions one which invests in futures contracts, rather than holding the actual tokens, which many proponents prefer.
Nonetheless, analysts believe that even a futures-based ETF trading in US markets could be a big boon for Bitcoin.
Marcus Sotiriou, a sales trader at digital asset broker GlobalBlock told CoinDesk:
It would still open the floodgates for institutional adoption and hopefully result in a spot-backed ETF being approved in the not-so-distant future, which would allow ordinary people to include the asset easily [in their brokerage accounts].
Bitcoin’s volatile price action
Though you may have banked 16% in virtual gains if you bought Bitcoin 7 days ago, don’t lose track of the token’s notorious volatility.
Investors who buy during the peaks and sell during the troughs are losing plenty of money.
In mid-April, for example, Bitcoin peaked at more than US$64,000. By late July it was down to US$29,800. And it has bounced around plenty since then.
Invest with care.