2023 has been a difficult year in the cryptocurrency business, with 2022 leading to major losses and many bankruptcies, leading to mixed happiness with major events causing sleepless nights for many. There was an optimistic mood among investors as they looked forward to 2024, a year full of fun and exciting times in the cryptocurrency market.
Cryptocurrency Trends: Two Weeks of Change
For example, a recent resurgence is Bitcoin, whose price has risen amid various macroeconomic factors. But while the U.S. has positive data, fears of a new outbreak in China have raised questions about another global pandemic. Meanwhile, speculation is rampant in the market as the U.S. Securities and Exchange Commission (SEC) postpones its decision on the spot Bitcoin ETF application advertisement submitted with major companies such as Blackrock and Fidelity.
Countdown to major ETF decisions
The deadline for these very important ETF decisions is fast approaching, around January 10th. Potential issuers were, oddly enough, having ongoing meetings with the SEC indicating approval around this time.
Expectations for cryptocurrency in early 2024
Cryptocurrency markets mostly operate on a “buy on the rumor, sell on the news” basis, and this is expected to be observed in the upcoming approval of spot Bitcoin ETFs as well. Institutional liquidity expected to flow into the market is seen as a long-term price catalyst for such approval.
bitcoin chart
Expected effects of ETF approval
However, in case of ETF approval, the market could witness a sharp reversal given that the current annual net inflows based on Coinshares are significant, as well as potential inflows of around $50 billion. This is creating excitement and anticipation among investors, with expectations that the cryptocurrency landscape could completely change as the ETF approval date approaches, pointing to the possibility of increased market volatility.