Bitcoin Blasts Past $45,000 As ETF Hype Heats Up: Get Ready For Liftoff

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Tuesday saw Bitcoin surpass $45,000 for the archetypal clip since April 2022. BTC had a beardown commencement to 2024 acknowledgment to hopes for the instauration of exchange-traded spot bitcoin funds.

At $45,355, the largest and astir well-known cryptocurrency successful the satellite experienced a 4.3% increase, reaching its highest level since April 6, 2022. Other tokens saw gains arsenic well; Ether, the second-largest, accrued by 2.6%.

As a effect of the change, Bitcoin is inactive 34% distant from its highest of $69,000 successful November 2021.

Anticipation On Bitcoin ETF Approval Fuels Rally

The US Securities and Exchange Commission’s expected support of galore spot bitcoin ETF launches, arsenic has been the lawsuit for immoderate weeks, seems to beryllium driving the terms increase.

Crypto YouTuber Lark Davis stated, “rumors flying that the spot Bitcoin ETF volition beryllium approved this week. Get ready.”

Rumours flying that the spot Bitcoin ETF volition beryllium approved this week. Get ready

— Lark Davis (@TheCryptoLark) January 2, 2024

On Friday, the SEC received updated filings from applicants, including the associated task Ark Invest/21shares, Blackrock, Bitwise, Fidelity, Vaneck, Valkyrie, Invesco, and Wisdomtree.

The archetypal deadline for Ark Invest/21shares’ planned spot bitcoin ETF is January 10. By then, a batch of radical expect that the securities authorization volition person approved respective spot bitcoin ETFs.

According to a Reuters report published implicit the weekend, the regulatory assemblage mightiness commencement informing ETF sponsors connected Tuesday that their applications volition beryllium accepted.

BTCUSD trading astatine $45,275 connected the play chart: TradingView.com

In caller years, the SEC has turned down galore requests to present spot bitcoin exchange-traded funds (ETFs), claiming that the cryptocurrency marketplace is susceptible to manipulation.

Investors FOMO As Spot Bitcoin ETF Approval Looms

Ahead of the impending approval, investors person been “buying connected January 1, archetypal happening New Year’s morning,” according to Hayden Hughes, co-founder of societal trading level Alpha Impact. This has caused immoderate traders successful the US and Europe to beryllium acrophobic of missing out.

BTCUSD 24-hour terms action. Source: Coingecko

This twelvemonth volition spot important maturation successful the cryptocurrency market, according to Jupiter Zheng, spouse of liquid funds astatine HashKey Capital. The main drivers of this maturation volition beryllium the inflow of concern superior from spot ETFs, the BTC halving, and much accommodating monetary policies globally and successful the US.

Meanwhile, options traders had been riding the spot ETF excitement and wagering connected the king crypto reaching $50,000.

Given the wide bullish temper and the impending halving—a process that reduces the magnitude of Bitcoin that miners person arsenic a artifact reward successful half—a important correction seems improbable, according to Cici Lu McCalman, laminitis of blockchain advisor Venn Link Partners.