The consensus within the crypto community is that a green light for a Bitcoin ETF is imminent, with expectations pointing towards an early approval in 2024.
Bitcoin (BTC), the world’s leading cryptocurrency has once again captured the financial industry’s attention by surging past the $44,000 price mark, reaching its highest level since April 2022.
Bitcoin price is currently trading at $43,483, representing a substantial 4% increase within the last 24 hours and extending gains from Tuesday. As the crypto community eagerly watches these developments, the drumbeat for a spot Bitcoin Exchange-Traded Fund (ETF) in the US grows louder, adding to the positive sentiment surrounding Bitcoin’s upward momentum.
Bitcoin Price Surge Linked to the ETF Buzz
One of the primary drivers behind Bitcoin’s recent climb has been the growing optimism surrounding the approval of a spot Bitcoin ETF in the United States.
Bitcoin’s upward trajectory began over the summer, and while the initial momentum was moderate, it gained substantial steam as reports surfaced about potential ETF issuers engaging with the US Securities and Exchange Commission (SEC). These issuers not only met with the SEC but also received and implemented feedback on their ETF applications, instilling confidence among investors.
Furthermore, renowned asset managers including BlackRock Inc (NYSE: BLK), and Bitwise recently updated their BTC ETF applications, with market analysts interpreting these filings as indications of the ongoing collaborative efforts with the SEC.
The consensus within the crypto community is that a green light for a Bitcoin ETF is imminent, with expectations pointing towards an early approval in 2024. The SEC’s response deadlines, contingent on issuers’ application filing dates, have fueled this expectation, creating a sense of anticipation within the market.
Adding to the positive atmosphere, the recent settlement between Binance and the US Department of Justice (DOJ) at the end of November has been viewed as an important milestone in the broader cleanup of the industry after the collapse of the FTX Derivatives Exchange. This settlement has removed a major hurdle for the industry, instilling confidence among investors and contributing to the positive sentiment surrounding Bitcoin.
Bitcoin Halving on the Horizon
Looking ahead, investors are eagerly anticipating the Bitcoin halving expected to take place in spring 2024. The previous halvings, occurring roughly every four years, have historically led to increased scarcity and a subsequent surge in Bitcoin’s value. As the market gears up for this event, the anticipation surrounding potential price gains adds another layer of excitement to the cryptocurrency’s current bullish trend.
Joel Kruger, a market strategist at LMAX Group, provides insight into the Bitcoin price trajectory based on technical analysis. According to Kruger, Bitcoin’s upward price momentum has a clear path ahead until the range between $48,000 and $53,000.
This range is notable, as it aligns with previous highs reached in March 2022 and September 2021. Kruger highlights a favorable zone between these two levels, with minimal resistance anticipated between the current price and the March 2022 high.