Bitcoin Surges Past $45,000 as ETF Speculation Fuels Positive Market Sentiment
In Brief
Bitcoin’s price exceeded $45,000 for the first time in 21-months, fueled by growing expectations of approval for the spot Bitcoin ETF.
Bitcoin today exceeded $45,000 for the first time since April 6, 2022, amid growing expectations of approval for the spot Bitcoin exchange-traded fund (ETF). Currently, the token is trading beyond the highest price reached in 2023, indicating a 21-month peak for the asset early into 2024.
The cryptocurrency experienced an increase of up to 4.3%, reaching a trading value of $45,355 earlier today. Concurrently, other tokens also exhibited gains — with Ethereum registering an increase of up to 2.6%.
The rise in price is reportedly associated with a sense of FOMO (fear of missing out) among specific traders in the United States and Europe, fueled by the expectation of imminent approval for a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) this week leading them to initiate buying activities early on January 1, right at the beginning of the New Year.
Bitcoin saw an almost 160% rebound last year, partially mitigating the impact of a steep decline in 2022 that had widespread repercussions in the cryptocurrency industry. During the period, the token outperformed global stocks and gold. However, it has yet to reach its pandemic-era record of nearly $69,000 set in 2021.
Bitcoin’s Market Dynamics Ahead of SEC Decision
Since early December, Bitcoin has experienced an increase of more than 20%, with the approaching deadline for the SEC to make a decision regarding a spot ETF for Bitcoin.
The price movement follows reports that the SEC might inform 14 asset managers about the potential approval of their spot Bitcoin ETF application this week as early as Tuesday or Wednesday ahead of the January 10 deadline.
The anticipated approval of spot Bitcoin ETFs is seen as a catalyst for attracting further institutional investment into the cryptocurrency sector.
The new development reflects the dynamic shifts in the cryptocurrency landscape driven by changes by changes in the investor sentiment, and the anticipation surrounding key events.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
