Bitcoin hit its 20-month high on Monday as the former SEC chairman Jay Clayton said that the BTC ETF approval is inevitable.
The price of Bitcoin has surged past $47,000 for the first time since April 2022, coinciding with the approaching deadline for the United States Securities and Exchange Commission (SEC) decision on spot BTC ETFs.
Bitcoin (BTC) ticker indicates a value of $46,889, experiencing a rapid climb from $44,000 on Jan. 8. In the last 24 hours, it has surged by more than 6.5%, marking a remarkable 177% increase over the past 12 months and reaching a year-to-date high at $47,284.
Earlier today, major asset management players such as BlackRock, Fidelity, and Grayscale submitted revised S-1 filings to the US SEC. As part of this update, several issuers disclosed the fees that they intend to impose on investors. If the SEC indeed grants approval, the potential announcement has the capacity to further propel the price of Bitcoin upward, as highlighted by Joel Kruger, a market strategist at LMAX Group, in an email. Kruger wrote:
“An approval could trigger a 10-15% rally, fueled by sidelined capital,” Kruger said. “If there’s no approval, projections hint at a possible correction, but strong support above $30,000 is expected.”
Bitcoin has not surpassed the $47,000 mark for almost 20 months, with the last occurrence dating back to April 3, 2022. During that period, Bitcoin reached a peak of $47,458 before entering a prolonged bear market that eventually led it to drop as low as $15,600.
According to Coinglass data, Bitcoin witnessed short-position liquidations exceeding $76 million on Monday. In addition, cross-crypto short liquidations totaled over $112 million.
Bitcoin (BTC) ETF Approval Is Inevitable
The SEC is nearing its initial deadline for the approval or rejection of the Ark 21Shares ETF application, set for Wednesday. There is a prevailing expectation that the regulatory agency will greenlight multiple applications simultaneously to ensure a fair and balanced market.
Former SEC chair Jay Clayton expressed confidence in the approval process, stating on CNBC’s “Squawk Box” on Monday that approval is inevitable. According to Clayton, there are no remaining crucial decisions to be made, emphasizing that this development is not only significant for Bitcoin but also holds broader implications for the financial industry as a whole.