Bitcoin rises above $45,000 amid expectations of approval of U.S. spot Bitcoin ETF
Bitcoin surpassed $45,000 at one stage in Asia on Tuesday morning, amid investor expectations that a spot Bitcoin ETF will be approved in the United States.
The largest cryptocurrency by market capitalization was trading at $44,965, up 5.8% over the past 24 hours, at 9:25 a.m. Hong Kong time, after surging as high as $45,083 at one stage in the morning, according to The Block. data. Bitcoin has surpassed the $45,000 level for the first time since April 2022.
Price movements occur following announcements made by the U.S. Securities and Exchange Commission (SEC). According to reports Notification to 14 asset managers If the SEC approves the spot Bitcoin ETF application as soon as Tuesday or Wednesday Deadline: January 10th.
“There’s not a lot happening on the macro side that makes you believe in anything other than the dynamics around cryptocurrencies,” Justin d’Anethan, head of APAC business development at cryptocurrency marketplace maker Keyrock, told The Block.
“In this case, we have heard of Blackrock, Fidelity, and other spot Bitcoin ETF applicants. check “The names of the brokers that will support BTC operations (so far: Jane Street, JP Morgan, Cantor Fitzgerald),” d’Anethan said, adding that the news “firms the current narrative that ETFs are coming soon.” ”
“Most investors are expecting some kind of formal decision by the first half of this month,” he said.
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Markus Thielen, head of research at Matrixport, told Block that Bitcoin could surge above $50,000 by the end of this week.
“While Tether’s increased mining activity may not be a signal for cryptocurrency inflows, the fact that the price is bouncing back could be a sign that there are no sellers in the market and prices are rising further,” Thielen wrote in a statement. It was shared with The Block early Tuesday morning.
Crypto analysts have pointed out that Bitcoin funding rates are reaching new highs, indicating that long-term investments are now more dominant. “This is how the futures market is pressuring the spot market and will likely push Bitcoin above its target level of $50,000 in January 2024, which seems reasonably achievable,” Thielen said.
Joe Caselin, head of institutional marketing at Seychelles-based cryptocurrency exchange BIT, told The Block that Bitcoin will continue to rise despite the “buy the rumor, sell the news” setup surrounding the expected ETF approval. He said it could soar.
“Even if the ETF launch triggers a selloff in the near term, the buying pressure that comes with the post-halving supply decline sets the stage for a very bullish 2024 with a breakout of ATH,” Caselin said.
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