Bitcoin Surpasses $45,000 Amid Anticipation of Bitcoin ETF Approval
Summary:
Bitcoin's price has surpassed the $45,000 mark for the first time in nearly two years, amid expectations of the approval of a Bitcoin exchange-traded fund (ETF). The cryptocurrency has seen a 6% rise in the last 24 hours and a 170% increase over the past year. The market awaits the SEC's decision on 14 pending spot Bitcoin ETF applications. Market analysts remain divided on the potential short-term impact of an ETF approval on Bitcoin's price.
For the first time in nearly a span of two years, Bitcoin (BTC) has surpassed the $45,000 marker in value, amid anticipation of a likely approval for a Bitcoin exchange-traded fund (ETF) spot. The cryptocurrency started the year at $42,000 and has since risen by more than 6% in the past 24 hours and skyrocketed by 170% the past year, according to CoinMarketCap data. This is the highest trading price Bitcoin has seen since 2023, marking a remarkable year high only two days into the new year of 2024. With 14 applications for a spot Bitcoin ETF product up in the air, the market is awaiting the Securities and Exchange Commission's (SEC) decision.
On April 5, 2022, nearly 20 months back, Bitcoin was traded at over $45,000 for the last time. It ended the day at $45,241, and then witnessed a prolonged bearish market phase, sinking its valuation to a dismal $15,600 as per TradingView data.
While the likely impact of an ETF approval on Bitcoin's short-term price remains a topic of contention among market observers, analysts from the crypto trading platform Greeks.live suggest that Bitcoin might not witness a substantial rally immediately after the approval, considering the decreasing implied volatility on Bitcoin options.
Contradictingly, traders like Scott Melkor predict an optimistic outcome, suggesting that Bitcoin, currently consolidating around $40,000, is forming a 'bull pennant'. He prophesies that Bitcoin's value could go up to $54,000 following the potential SEC approval.
However, Gabor Gurbacs, an advisor at VanEck, anticipates that the market will perceive the initial phase of a spot Bitcoin ETF as a 'letdown.' He ultimately predicts these products would draw trillions of dollars in inflows in the coming years.
Published At
1/2/2024 3:59:31 AM
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