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(Kitco News) - The cryptocurrency market is firing on all cylinders as Bitcoin (BTC) climbed to a 2023 high of $35,165 in the early hours on Tuesday, sparking a rally across the altcoin market as traders looked to position themselves ahead of a potential extended bull run.

Developments related to the potential listing of a spot BTC exchange-traded fund continue to be the driving force behind the uptick in momentum, with Bloomberg Intelligence senior ETF analyst Eric Balchunas reporting that BlackRock’s iShares Bitcoin Trust has been listed on the DTCC.

“iShares Bitcoin Trust has been listed on the DTCC (Depository Trust & Clearing Corporation, which clears NASDAQ trades),” Balchunas tweeted on Monday evening. “And the ticker will be $IBTC. Again all part of the process of bringing ETF to market."

Reports also emerged that BlackRock has informed the Securities and Exchange Commission that it plans to start seeding its spot Bitcoin ETF in October in preparation for approval, which has likely prompted some traders to get into the market ahead of any potential price increases caused by BlackRock’s eventual purchase of BTC.

As a result of the flurry of ETF-related developments and the participation of the world’s largest asset manager, Bitcoin price extended the gains seen in the afternoon on Monday and climbed above $35,000 for the first time since early May 2022, when prices across the crypto market were starting to decline in the wake of the collapse of Terra/Luna.

BTC/USD Chart by TradingView

Data provided by Coinglass shows that the sudden surge in price caught bears flat-footed as more than $322 million worth of BTC shorts were liquidated across the ecosystem, making this the largest liquidation event of 2023.

BTC total liquidations. Source: Coinglass

While crypto proponents are excited about the prospect of finally getting a spot BTC ETF and the boost in momentum it has brought to the crypto market, multiple analysts have warned that there could still be a significant price pullback in the near future once the initial hype dies down.

According to Peter Schiff, the approval of a spot BTC ETF will likely mark the top of the current market, and Bitcoin’s price would actually fare better if the ETF applications were rejected.

#Bitcoin is now trading at $35K as speculators bet on SEC approval of $GBTC converting into an ETF. Such a conversation will likely mark the top of the rally, if Bitcoin doesn't sell off prior to approval. The selloff will be less severe if the ETF conversion is rejected again.

— Peter Schiff (@PeterSchiff) October 24, 2023

In a follow-up post, Schiff said, “Speculators are buying Bitcoin now because they think other speculators are waiting to buy a Bitcoin ETF. They will soon discover that there are far more speculators waiting to sell than waiting to buy!”

And it's not just those in the anti-crypto crowd that are calling for a notable pullback, as market analyst Ninja posted the following chart suggesting that BTC could soon plunge back to the low $20,000s now that all of the CME gaps to the upside have been filled.

— Ninja (@Ninjascalp) October 23, 2023

At the time of writing, Bitcoin is trading at $34,345, an increase of 11.7% on the 24-hour chart. The overall cryptocurrency market cap now stands at $1.27 trillion, and Bitcoin’s dominance rate is 52.9%.