Distributed Ledger: Bitcoin had a nice rally, but don’t expect it to test all-time highs for at least a year

by | Oct 26, 2023 | Stock Market

Welcome back to Distributed Ledger. This is Frances Yue, reporter at MarketWatch. Bitcoin
had an impressive rally this week, rising from around $30,000 on Sunday to above $35,000 at one point, according to CoinDesk data, with a spike up in retail and institutional inflows. The cryptocurrency is trading Thursday at around $34,000. 

The rally was mostly based on optimism that an exchange traded fund investing in bitcoin will be soon approved in the U.S. The U.S. Securities and Exchange Commission rejected several applications for such products in the past, citing vulnerability to market manipulation, but there were signs that things could change.  Bitcoin has gained almost 110% so far this year, but is still more than 50% below the peak at $68,990 reached in November, 2021.  I spoke to a few industry participants to see if this week’s rally is sustainable and whether bitcoin is on a path to reach a new all-time high.  Find me on Twitter at @FrancesYue_ to share any thoughts on crypto or this newsletter.Path to the top? The chances of bitcoin reaching a new all-time high before the halving event, which is expected to take place in April next year, is very low, according to Anthony Rousseau, head of brokerage solutions at TradeStation.  Bitcoin halving refers to a process where block rewards given to crypto miners are cut in half after every 210,000 blocks are mined, or about every four years. Historically, bitcoin prices tend to app …

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