In anticipation of a potential Spot Bitcoin exchange-traded fund (ETF), Bitcoin price has surpassed $45,000 for the first time since April 2022.
As of January 1, Bitcoin was trading at $42,000, a significant increase of over 6% in the last twenty-four hours and 170% over the previous year, according to data from CoinMarketCap.
Bitcoin has attained its highest trading level since 2023 and has set a new yearly high for the asset within the first two days of 2024.
The SEC’s approval of one or more of the fourteen outstanding applications for a spot Bitcoin ETF product is a matter of anticipation for the market. Bitcoin’s price performance coincides with this anticipation.
According to TradingView data, the last time Bitcoin traded above $45,000 was on April 5, 2022, when it concluded the day at $45,241. Since then, Bitcoin has descended into an enduring bear market, with the price falling as low as $15,600.
There is ongoing debate among market commentators regarding the immediate ramifications that the licensing of an ETF could have on the price of Bitcoin.
As implied volatility on Bitcoin options decreases, analysts from the crypto options trading platform Greeks.live predict that Bitcoin will not experience a significant rally on the day of approval.
Scott Melkor, one of X’s 925,000 followers, disagrees, stating that Bitcoin is presently exhibiting characteristics of a “bull pennant” after a month of consolidation at prices near $40,000.
Melkor predicts that Bitcoin’s price could reach $54,000 in the days following the prospective SEC approval.
In the interim, Gabor Gurbacs, an advisor at VanEck, forecasts that the initial days of a spot Bitcoin ETF will be deemed a “letdown” by the general market but that the product will ultimately attract inflows totaling trillions of dollars over the coming years.
