Bitcoin Price Recovers Following Flash Crash
After experiencing a flash crash and dropping to $41,500, the price of Bitcoin has rebounded and surpassed the $43,000 mark. The flash crash was triggered by a controversial report from Matrixport, which suggested a potential rejection of spot Exchange Traded Funds (ETFs) by the US Securities and Exchange Commission (SEC). However, experts have questioned the validity of the report. Additionally, there is positive sentiment in the market due to an important SEC update.
Crucial Discussions for Bitcoin ETF Approval
The SEC staff attorneys from the Division of Trading and Markets have engaged in discussions with representatives from major exchanges such as NYSE, Nasdaq, and CBOE. These discussions are crucial for the approval of several Bitcoin ETF applications. According to an anonymous source, the SEC could start notifying issuers of approval as early as Friday, with trading potentially beginning next week.
Expert Predictions on ETF Approval
Bloomberg ETF analyst James Seyffart agrees with the possibility of approval, stating that he expects official approvals between January 8-10. He believes there will be a short gap between approval orders and actual trading. Eric Balchunas also supports this view and suggests that recent updates from issuers indicate imminent approval. However, finance lawyer Scott Johnsson points out that this level of engagement by the SEC is unusual if they intend to deny approval.
Cryptocurrency Market Optimistic
Despite uncertainties, the cryptocurrency market remains cautiously optimistic about ETF approval by January 10 or even earlier. The Bitcoin price has closed its daily candle within an uptrend channel established since mid-October. At the time of writing, BTC is trading at $43,102.
Hot Take: Bitcoin Price Rebounds as ETF Approval Speculation Grows
Following a flash crash triggered by a controversial report, the price of Bitcoin has recovered and surpassed $43,000. Discussions between the SEC and major exchanges regarding Bitcoin ETF approval have fueled speculation that approval could be imminent. Experts predict that issuers may receive approval notifications soon, with trading potentially starting next week. While some believe this indicates a high likelihood of approval, others question the SEC’s engagement if they intend to deny it. Nevertheless, the cryptocurrency market remains cautiously optimistic about ETF approval by January 10 or earlier.
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