The Price of Bitcoin After Approval of Bitcoin Spot ETFs
When the news of the SEC’s approval for Bitcoin spot ETFs is announced, there may be a sell-off as speculators try to capitalize on their gains. However, there is still a possibility that the price of BTC could rise further before the approval, attracting more speculators who may want to sell. It’s important to note that the price of Bitcoin has only been above $45,000 for a few months in its history. As a result, some investors may choose to monetize their profits if they believe that the price has reached its peak.
What Will Happen to the Price of Bitcoin After the Launch of ETFs?
The launch of Bitcoin spot ETFs on US stock exchanges is expected to happen between Thursday and Friday. The market reception for these products is still uncertain. For example, on the Toronto Stock Exchange, the most traded Bitcoin spot ETF had a trading volume of just over $10 million. In contrast, spot Bitcoin trades on Binance amounted to over $6 billion in the last 24 hours. The performance of these new ETFs on the market will determine whether the price of Bitcoin reacts positively or negatively.
The Medium Term
Analysts argue that the demand for Bitcoin spot ETFs could drive up the price of Bitcoin in the medium term. There are rumors that BlackRock plans to purchase up to $2 billion worth of BTC in just the first week of its new ETF’s presence in the market. Additionally, factors such as a less restrictive monetary policy by the Fed and the upcoming Bitcoin halving in April could contribute to positive effects on Bitcoin’s price. However, it remains uncertain when a potential retracement will occur and how it will impact the price.
Bulls and Bears
Currently, bulls expect the price of Bitcoin to rise to at least $50,000, with some even predicting figures as high as $60,000 or more in the medium term. On the other hand, bears anticipate a short-term retracement of 10%, 20%, or even 30% due to sell-off following the news of ETF approval. A decline of more than 10% could mean a return to around $40,000 or even lower. However, it is possible that the price could rebound before April. In the event of a lukewarm reception for Bitcoin spot ETFs, a return to around $30,000 cannot be ruled out.
Hot Take: The Future Price of Bitcoin After ETF Approval
At this moment, it is expected that the SEC will finally approve the issuance of ETFs on Bitcoin spot on US exchanges. The expectation is for tomorrow, Wednesday, January 10, 2024. The price of BTC after this approval remains uncertain and depends on various factors such as market reactions, investor behavior, and external events like the Bitcoin halving and monetary policy changes. While some analysts believe that the price could rise further in the short term before a potential retracement, others argue that the demand for Bitcoin spot ETFs could drive up its price in the medium term. Ultimately, only time will tell how these dynamics will play out and what impact they will have on the future price of Bitcoin.
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