Bitcoin (BTC) returned above $43,000 on December 19, following new news about the first spot BTC exchange-traded fund (ETF) in the United States.
Expectations for Bitcoin ETF Still Boiling
BTC prices recovered, pushing the market to a local high of $43,456 after the day’s close, according to data from Cointelegraph Markets Pro and TradingView.
After starting the week on uncertain terms, BTC/USD quickly strengthened, closing the December 18 candle more than 5% above the day’s low.
News later emerged that asset manager BlackRock, one of the first applicants to launch a spot Bitcoin ETF in the U.S., had changed its policies regarding product buybacks to include BTC as an option.
“In-kind redemptions of some or all of a shareholder’s shares in exchange for the underlying Bitcoin denominated in redeemed shares generally will not be taxable to the shareholder,” the latest iteration of BlackRock’s S1 filed with the American Stock Exchange said. This is the content. Commission (SEC) says:
The document also sets out new rules for exchanging a basket of stocks for cash rather than BTC, with the latter subject to regulatory approval.
The SEC is expected to begin making a final decision on spot ETFs in early January 2024, making the next month a watershed moment in the diaries of Bitcoin investors.
As Cointelegraph reported, various BTC price predictions hinge on a successful approval, which is currently thought to be an overwhelming possibility. After years of delays and denials.
“If you look at the level of SEC participation and the back and forth/changes of the Bitcoin ETF, you can see this is a 99.9% done deal,” said trader and investor Bob Loukas. reacted Find out about the latest developments on X (formerly Twitter).
The SEC this week postponed its final decisions on several Ethereum (ETH) ETFs until May.
Bitcoin Trader: $50,000 Possible Before 2024
However, from time to time, Bitcoin faces annual candle closes and various macroeconomic data releases, which can add to the volatility of the holiday season.
Related: ‘Inherently Bearish’ Below $41.5K — 5 Things to Know in Bitcoin This Week
Traders continue to draw lines both above and below spot prices, with a trip below $40,000 still possible.
In a December 18 video update, Crypto Ed, the founder of trading group CryptoTA, predicted that a final advance could occur before the final rally, with BTC/USD likely rising to $50,000 before the end of 2023.
“We’ll see how this plays out later this week,” he concluded, suggesting a low target of $38,000.
Celebrity trader and analyst Matthew Hyland is also optimistic about the possibility of further upside due to the difference in the strength of the Bitcoin Relative Strength Index (RSI) compared to the price at different times of the day.
#BTC We saw this bullish difference in the previous daily close.
Currently already over $43,000 https://t.co/SBUVu4fT2V pic.twitter.com/8qyCBYtMcV
— Matthew Hyland (@MatthewHyland_) December 19, 2023
At the time of this writing, the daily RSI is at 60.45, cooling off from overheated levels as Bitcoin falls from its recent 19-month high of $44,000.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.