In a significant market development, the price of Bitcoin (BTC) has surpassed $45,000, reaching levels not seen in nearly two years. This surge comes amid anticipation of the expected approval of a spot Bitcoin exchange-traded fund (ETF).
Bitcoin, with the ticker BTC, exhibited rapid growth, rising from $42,000 on January 1. Over the last 24 hours, it has surged more than 6%, marking a remarkable 170% increase over the past year according to CoinMarketCap data.
The current Bitcoin price is higher than any point reached in 2023, establishing a noteworthy new yearly high for the cryptocurrency just two days into 2024.
This surge in Bitcoin’s value aligns with the market’s anticipation of the Securities and Exchange Commission (SEC) approving one or more of the 14 pending applications for a spot Bitcoin ETF. The decision from the regulatory body is eagerly awaited by market participants.
The last time Bitcoin surpassed the $45,000 mark was almost 20 months ago on April 5, 2022. Subsequently, Bitcoin entered a prolonged bear market, reaching as low as $15,600, as per TradingView data.
There is a division among market commentators regarding the potential short-term impact of an ETF approval on Bitcoin’s price.
Analysts from crypto options trading platform Greeks.live argue that Bitcoin may not witness a significant rally on the day of approval due to declining implied volatility on Bitcoin options.
Conversely, traders on X hold a different perspective. Scott Melkor, addressing his 925,000 followers, suggests that Bitcoin is currently forming a “bull pennant” after a month of consolidation around the $40,000 mark. Melkor predicts that Bitcoin could surge as high as $54,000 in the days following a potential approval from the SEC.
Gabor Gurbacs, an advisor at VanEck, foresees the initial phase of a spot Bitcoin ETF being perceived as a “letdown” by broader market standards. However, Gurbacs remains optimistic, anticipating that these products will attract trillions of dollars in inflows over the next few years.
