Bitcoin Surges Above $45,000 Amid Anticipation of Spot ETF Approval

Bitcoin has surged above the $45,000 mark for the first time in almost two years, driven by market anticipation of a forthcoming approval for a spot Bitcoin exchange-traded fund (ETF).

The digital currency has experienced a rapid ascent from $42,000 at the beginning of the year, with a remarkable 6% increase in the last 24 hours and an impressive 170% gain over the past year, according to CoinMarketCap data.

This milestone places Bitcoin at a price level exceeding any seen in 2023, signifying a notable start to 2024.

The surge in Bitcoin’s price coincides with the cryptocurrency community’s hopeful outlook for the potential approval of one or more of the 14 pending applications for a spot Bitcoin ETF product, currently awaiting a decision from the Securities and Exchange Commission (SEC).

The last time Bitcoin surpassed the $45,000 mark was nearly 20 months ago on April 5, 2022, before it entered a prolonged bear market, eventually reaching a low of $15,600, as indicated by TradingView data.

Market experts hold differing opinions on how an ETF approval would impact Bitcoin’s short-term price.

Analysts at crypto options trading platform Greeks.live anticipate that Bitcoin might not witness a significant immediate rally, citing diminishing implied volatility in Bitcoin options.

READ MORE: VanEck Launches Pro-Crypto Ad Campaign Amid Pending Bitcoin ETF Application

Conversely, traders such as Scott Melkor, with a substantial following of 925,000, believe that Bitcoin is currently forming a “bull pennant” after a month of consolidation around the $40,000 range.

Melkor envisions the possibility of Bitcoin surging to as high as $54,000 in the days following the SEC’s potential approval.

Meanwhile, Gabor Gurbacs, an advisor at VanEck, predicts that the initial days of a spot Bitcoin ETF may be considered somewhat of a “letdown” by broader market standards.

Nevertheless, he anticipates that these products will eventually attract trillions of dollars in inflows over the next few years, emphasizing their long-term significance.

In conclusion, Bitcoin’s remarkable price increase to over $45,000 marks a significant milestone, driven by optimism surrounding the pending spot Bitcoin ETF approvals.

As the cryptocurrency market awaits the SEC’s decision, the community remains divided on the short-term and long-term implications of this potential development.

Discover the Crypto Intelligence Blockchain Council