Bitcoin Surges Above $43,000 Amid Anticipation of US's First Spot Price ETF
Summary:
Bitcoin surpassed the $43,000 mark on Dec. 19 with the anticipation of US's possible first spot price exchange-traded fund (ETF). The asset manager BlackRock altered their redemption policy to incorporate BTC as an option. This action has prompted an uplift in the crypto market, with a potential push noticed towards a $50,000 BTC value before 2024. The SEC will begin final decisions on spot ETF in January, increasing the probability of an approval after years of waiting.
On December 19th, Bitcoin (BTC) surpassed the $43,000 mark, fueled by anticipation for the U.S.'s possible inaugural spot price exchange-traded fund (ETF). According to information from Cointelegraph Markets Pro and TradingView, BTC experienced a rebound, reaching local peaks of $43,456 post daily close. Following a shaky start to the week, BTC/USD displayed notable resilience, with the Dec 18th candle reflecting a more than 5% uptick from the day's low.
BlackRock, an asset management company and one of the contenders to pioneer the first U.S. Bitcoin spot ETF, created a buzz with their decision to alter their redemption policy to encompass BTC as a choice.
According to the recent revision of BlackRock's S1 filing with the U.S. Securities and Exchange Commission (SEC), “An in-kind redemption of some or all of a Shareholder’s Shares in exchange for the underlying bitcoin represented by the Shares redeemed generally will not be a taxable event to the Shareholder."
The briefing also establishes new guidelines on exchanging shares for cash rather than BTC, securing the latter pending regulatory approval.
January, significant in Bitcoin enthusiasts' calendars, is when the SEC will commence final considerations on spot ETF. Multiple BTC price prognoses are contingent upon an affirmative result, which according to experts, is highly probable after years of delay and denial.
Trader and investor Bob Loukas commented on the new movement, stating, “The level of SEC engagement and back/forth/changes on the bitcoin ETF tells us this is a 99.9% done deal,” in response to the latest developments on X (formerly Twitter).
This week, the SEC deferred the ultimate resolution on multiple Ether (ETH) ETFs to May.
CryptoTA's creator, Crypto Ed, estimated in a Dec 18th video that BTC value could potentially climb to $50,000 before 2024. He further indicated a downward target of $38,000, adding, "Let’s see later in the week how this develops.”
Matthew Hyland, a renowned trader and analyst, shared an optimistic perspective on additional growth, pointing out positive divergence in Bitcoin's relative strength index (RSI) against price on daily timeframes.
As of the date of the report, daily RSI was at 60.45, settling down from previous highs as Bitcoin retreated from a 19-month peak above $44,000.
This report doesn't provide any investment advice or suggestions. Every investment and trading movement involves a risk and should be based on thorough personal research.
Published At
12/19/2023 11:19:12 AM
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