Bitcoin Crosses $45k Amid Spot Bitcoin ETF Approval Anticipation
Bitcoin is currently exchanging hands at $45,724.72, representing a notable increase of 7.16% in the last 24 hours. This surge in the trading value of BTC has generated excitement among crypto enthusiasts worldwide, as it is projected to reach the significant milestone of $50k by the end of the week.
The primary driving force behind this price surge is the anticipation surrounding the approval of applications for the Spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). If these applications are approved, 14 asset managers are expected to launch their respective products, allowing traders and investors to engage in a structured form of crypto investment.
The SEC is slated to make a decision on these applications by January 10, 2024. This potential approval has reignited the optimism surrounding Bitcoin, propelling it to surpass the $45k milestone for the first time since April 2022.
The increase in prices can be attributed to the combination of high demand and limited supply. When the quantity of sellers falls short of the quantity of customers, prices tend to rise. While the approval of the Spot Bitcoin ETF is a significant factor driving the market, it is also possible that some traders are holding onto their Bitcoin portfolios for the long term, hesitant to sell their holdings at present.
This behavior is consistent with the historically proven strategy of accumulating crypto tokens, which has yielded substantial profits for investors. For instance, those who added Bitcoin to their portfolios when it was valued at $20k have already seen significant returns.
Asian markets, such as Hong Kong, opened with a prevailing sense of optimism, with Bitcoin starting the day at $45,083.
Experts have confirmed the widespread anticipation surrounding the approval of the Bitcoin ETF. Justin d’Anethan, the Head of APAC Business Development at Keyrock, noted that prominent firms like BlackRock and Fidelity confirming the names of brokers supporting their BTC operations further solidify the belief that the SEC will soon approve these applications, many of which have been revised to meet the Commission’s recommendations.
Markus Thielen, the Head of Research at Matrixport, shares a similar sentiment, stating that although there may not be significant minting activities at Tether, the price of Bitcoin is undoubtedly increasing. Thielen suggests that this phenomenon may be due to a scarcity of sellers willing to part with their tokens.
Joe Caselin, the Head of Institutional Marketing at BIT, remains confident that the price of Bitcoin will continue to rise, despite the ongoing buying the rumor and selling the news dynamic in the market.
If the Spot Bitcoin ETF remains unaffected in the market, the upcoming Bitcoin Halving event could further fuel the rise in its value. Furthermore, if Bitcoin performs well, other tokens such as ETH, currently priced at $2,416.10, are likely to experience a positive impact as well.
As the momentum behind Bitcoin builds, it is attracting attention from investors and enthusiasts worldwide. The anticipation surrounding the approval of the Spot Bitcoin ETF by the SEC is driving this surge in price, with the potential to reach new highs in the coming weeks. The crypto market continues to evolve, offering opportunities for those willing to participate in this rapidly expanding sector.
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