Tuesday Sees Bitcoin Surpass $45,000 for the First Time Since April 2022
Bitcoin had a strong start to 2024, surpassing $45,000 for the first time since April 2022. The cryptocurrency experienced a 4.3% increase, reaching its highest level in almost two years. Other tokens also saw gains, with Ether increasing by 2.6%. However, Bitcoin is still 34% away from its peak of $69,000 in November 2021.
Anticipation of Bitcoin ETF Approval Fuels Rally
The expected approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) seems to be driving the price increase. Numerous applicants have submitted filings to the SEC, including Ark Invest/21shares, Blackrock, Bitwise, Fidelity, Vaneck, Valkyrie, Invesco, and Wisdomtree. The first deadline for Ark Invest/21shares’ planned ETF is January 10. Traders anticipate that the SEC will approve several spot Bitcoin ETFs by then. The regulatory body may start informing ETF sponsors of their accepted applications on Tuesday.
Investors Fear Missing Out as Spot Bitcoin ETF Approval Looms
Investors have been buying Bitcoin ahead of the anticipated ETF approval. This has caused some traders to fear missing out on potential gains. Jupiter Zheng, partner of liquid funds at HashKey Capital, predicts significant growth in the cryptocurrency market this year due to inflows from spot ETFs, the BTC halving, and accommodating monetary policies globally and in the US.
Options traders have been betting on Bitcoin reaching $50,000. Cici Lu McCalman from Venn Link Partners believes that a significant correction is unlikely given the bullish mood and the impending halving. Trader and analyst “Nebraskangooner” predicts a price of $48,000 for the next surge.
Hot Take: Bitcoin Surpasses $45,000 Amid ETF Approval Speculation
Bitcoin’s price surged above $45,000 on Tuesday, marking its highest level since April 2022. The anticipation of spot Bitcoin ETF approvals by the SEC has fueled the rally. Investors have been buying Bitcoin to avoid missing out on potential gains. With significant growth expected in the cryptocurrency market this year, driven by spot ETF inflows, the BTC halving, and accommodating monetary policies, traders are optimistic about Bitcoin’s future. Despite being 34% away from its all-time high, a significant correction seems unlikely given the current bullish sentiment. Analysts predict further price surges, with some speculating a target of $48,000 for the next surge.
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