Bitcoin, the leading cryptocurrency, has recently surpassed the $45,000 threshold, marking a significant milestone not witnessed in almost two years. This surge comes amidst heightened anticipation in the cryptocurrency market surrounding the potential approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States.
Bitcoin's Remarkable Rally:
As of the latest market data, Bitcoin is trading at $45,825, showing an impressive ascent from its value of $42,000 at the beginning of the year. This surge represents a remarkable 6% increase in the past 24 hours and a staggering 170% surge over the preceding year, according to CoinMarketCap.
New Year, New High:
The current Bitcoin price level surpasses any reached in 2023, establishing a robust new yearly high for the cryptocurrency within the first two days of 2024. This positive momentum has captured the attention of investors and market observers alike, generating heightened excitement within the crypto community.
Spot Bitcoin ETF Approval in Focus:
The recent surge in Bitcoin's price coincides with the crypto market's anticipation of the Securities and Exchange Commission (SEC) approving one or more of the 14 outstanding applications for a spot Bitcoin ETF. These applications are currently pending a decision with the regulatory body.
Revisiting Historical Price Levels:
The last time Bitcoin traded above $45,000 was almost 20 months ago on April 5, 2022. However, this was followed by a prolonged bear market that saw Bitcoin plummet to as low as $15,600, as indicated by TradingView data.
Divergent Views on ETF Impact:
Analysts within the cryptocurrency space hold varying opinions on the potential impact of an ETF approval on Bitcoin's short-term price trajectory. Some, like those at Greeks live, argue that Bitcoin may not experience a significant rally on the approval day, citing dwindling implied volatility on Bitcoin options.
Contrastingly, traders such as Scott Melkor suggest a bullish scenario, pointing to the formation of a "bull pennant" after a month of consolidation around the $40,000 mark. Melkor predicts a potential surge to $54,000 in the days following an SEC approval.
Industry Insights and Speculations:
Gabor Gurbacs, an advisor at VanEck, offers a nuanced perspective, predicting that the initial days of a spot Bitcoin ETF may be considered a "let down" by broader market standards. However, he anticipates that these products will attract trillions of dollars in inflows over the coming years.
Preparedness in the Industry:
Major players in the cryptocurrency industry, including Coinbase and Galaxy CEO, have expressed readiness for a spot Bitcoin ETF approval. Coinbase mentions extensive preparations, while Galaxy CEO hints at "big things coming."
Awaiting SEC Notification:
The SEC is expected to notify Bitcoin spot ETF issuers as early as Tuesday or Wednesday, indicating clearance to launch the following week. Currently, 14 asset managers are eagerly awaiting SEC approval for spot Bitcoin ETFs, signaling a growing interest in the mainstream adoption of cryptocurrency.
As Bitcoin continues its upward trajectory, breaking the $45,000 barrier, the imminent decision on a spot Bitcoin ETF approval adds a layer of excitement and speculation to the crypto market. Whether the approval will trigger an immediate surge or a more prolonged bullish trend remains uncertain, but the industry's anticipation is palpable. As the regulatory landscape evolves, the outcome of these developments will likely shape the trajectory of Bitcoin and the broader cryptocurrency market in the coming months and years.