In a surprising turn of events, Bitcoin’s value soared past $41,000, hitting a major milestone shortly after reaching $40,000. This surge in value directly reflects growing optimism surrounding the potential approval of a Bitcoin exchange-traded fund (ETF). So is it too late to buy now, or is it a good time to enter this thriving market?
The momentum in Bitcoin’s value continued into Monday, with the price surpassing $41,700, a notable increase from the $40,000 achieved on Sunday. current figures Gate.io to show Bitcoin price is slightly above $41,800., up 5.6% for the day and an impressive 11% for the week. This growth is even more pronounced compared to last year’s value of $17,000, representing a dramatic 144% increase over the past year.
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This surge in the value of Bitcoin has pushed the price to the highest level not witnessed since April 2022 and has contributed significantly to the overall cryptocurrency market capitalization, with the current Bitcoin market cap increasing by 3.6% in the last 24 hours. It amounts to $610 billion.
Data from the market analytics platform highlights the impact of the Bitcoin price surge, showing that over $166 million worth of short positions in Bitcoin derivatives were liquidated in the last 24 hours.
The weekend’s price dynamics appear to have been influenced by renewed expectations of a direct Bitcoin ETF approval from the U.S. Securities and Exchange Commission (SEC). In recent weeks, the SEC has been working with applicants such as Grayscale and BlackRock to discuss modifications to their ETF applications. This has led analysts to focus on specific dates in January when the SEC may approve multiple applications simultaneously.
Bitcoin ETF approval pending
Analysts at Bloomberg Intelligence have estimated a 90% chance that the SEC will approve a Bitcoin ETF in January, amid optimism among various leading figures, including Coinbase CEO Brian Armstrong and analysts at JP Morgan. It aroused.
However, the SEC’s decision remains uncertain, as it has historically rejected all previous direct Bitcoin ETF applications.
Analysts predict that Bitcoin’s value may undergo a correction following the approval of a direct Bitcoin ETF. However, due to the unpredictable nature of the cryptocurrency market, there is room for different outcomes. Over the past 11 months, the value of Bitcoin has steadily increased, with notable surges in March, June, and October due to anticipation of the approval of a Bitcoin ETF.
BTC price prediction
Cryptocurrency analyst James Edwards suggested that Bitcoin ETF approval could lead to a market sell-off. Edwards points out that while his Bitcoin price prediction may seem logical, it is unlikely that the fund manager will make a large purchase immediately. He expects significant inflows into these ETFs to take months or years.
Despite the potential for correction, many experts, including Edwards, recognize that predicting the behavior of cryptocurrency markets is difficult. Merkle Tree Chief Investment Officer Ryan McMillin acknowledges the growing risk of a market correction, but notes the high expectations surrounding the launch of the Bitcoin ETF.
CK Zheng, co-founder of ZX Squared Capital, expects the market decline to be minimal, citing Bitcoin’s strong underlying fundamentals, including the upcoming Bitcoin halving, continued global central bank monetary expansion, and continued geopolitical uncertainty.
Year-end outlook
Market experts do not expect a decline in Bitcoin in December. Edwards notes early signs of institutional investors speculating on ETF approval, as seen in recent inflows into existing Bitcoin futures ETFs. He expects the market to maintain at least current levels while awaiting further confirmation of ETF approval.
Cryptocurrency lawyer Joe Carlasare sees little chance of a major correction in Bitcoin before ETF approval and questions why major sellers would show up so close to the expected approval.
Apollo Capital’s Chief Investment Officer Henrik Anderrson believes the joint approval of a Bitcoin ETF could refocus mainstream attention on the cryptocurrency market. The industry is eagerly awaiting the approval window, which is expected to take place between January 5 and 10, 2024.