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In an unprecedented start to 2024, Bitcoin (BTC) has once again become the focal point in the financial world, soaring past the $45,000 barrier, a feat last seen almost two years ago. This significant rally in Bitcoin’s price is largely driven by the heightened anticipation surrounding the approval of a spot Bitcoin ETF (exchange-traded fund) by the U.S. Securities and Exchange Commission (SEC), expected in the near future.
BTC Breaks Above $45K!$BTC was able to break above the $45K barrier over the past 24 hours as anticipation surrounding #BitcoinETF approvals spike. With just a few days left until a potential approval, buyers are scrambling to position themselves for a possible #BULLRUN2024 ! pic.twitter.com/Y3rsBeIDsU — Ecoinimist (@ecoinimist) January 2, 2024
Recent data from CryptoQuant highlights a notable development in the cryptocurrency arena: Bitcoin reserves held by miners have plummeted to their lowest since May 2023. This downturn is a result of substantial withdrawals by miners over the past week, indicating an increased selling trend in the crypto market. Despite this, Bitcoin showcased a strong performance, recording an over 13% increase in December.
Bitcoin’s Impressive Rally
The Bitcoin price surges in the past 48 hours (Source: TradingView)
Bitcoin’s value has seen a remarkable upswing, starting the year at $42,000 and witnessing a 6% increase within a single day. This surge represents a 170% jump from last year, as per CoinMarketCap figures. The recent price jump marks a significant milestone for Bitcoin, achieving an annual high within the first two days of 2024, surpassing any level reached in 2023.
The Buzz Around Spot Bitcoin ETF
The speculation and excitement over the SEC potentially approving a spot Bitcoin ETF are key contributors to Bitcoin’s recent price spike. With 14 applications pending, the approval of these ETFs could revolutionize the cryptocurrency market by providing regulated, accessible investment options for both institutional and retail investors.
The last time Bitcoin crossed the $45,000 mark was nearly 20 months ago, on April 5, 2022. Despite reaching $45,241, the celebration was short-lived as Bitcoin entered a bear market, with its value dropping to $15,600, according to TradingView.
The upcoming SEC decision on spot Bitcoin ETFs has sparked varied forecasts among experts. Analysts at Greeks.live caution that Bitcoin might not see an immediate rally following the ETF approval due to a decrease in implied volatility in Bitcoin options. Conversely, Scott Melkor, a prominent trader, predicts a potential surge to $54,000 following the SEC’s approval, citing the formation of a “bull pennant” pattern in Bitcoin’s price.
$BTC Daily Breaking out of the bull pennant after nearly a month of consolidation. The target based on the measured move from the length of the flag is roughly $54,000. Targets rarely hit, anything can happen. But that's what the chart says. pic.twitter.com/txs5QFJAqI — The Wolf Of All Streets (@scottmelker) January 2, 2024
Long-Term Outlook
Gabor Gurbacs, an advisor at VanEck, offers a long-term view, suggesting that while the initial response to a spot Bitcoin ETF might seem underwhelming, the future looks promising. He envisions these ETFs attracting trillions of dollars over the coming years, further cementing Bitcoin’s position as a mainstream investment asset.
As 2024 unfolds, the cryptocurrency market is abuzz with Bitcoin’s remarkable ascent and the anticipated SEC decision on a spot Bitcoin ETF. While expert opinions vary on its immediate and long-term impacts, Bitcoin continues to captivate the investment world, promising an exciting year in the realm of digital assets.
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