Bitcoin's (BTC) price has recently soared, surpassing the $45,000 mark, a level not seen in nearly two years.
The surge occurs in anticipation of the expected approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
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The cryptocurrency's value has witnessed a significant climb, jumping from $42,000 on January 1st to over $45,000 on January 2nd, marking an impressive 6% increase in the last 24 hours and a 170% rise over the past year.
This recent peak in Bitcoin's price is notable, surpassing any value it achieved in 2023 and setting a new record at the beginning of 2024. It is worth noting that the last time Bitcoin's price was over $45,000 was nearly 20 months ago, on April 5th, 2022. This was followed by a prolonged bear market, where Bitcoin's value plummeted to as low as $15,600.
The current rise in Bitcoin's value is closely tied to the market's anticipation of the SEC's decision on the 14 pending applications for a spot Bitcoin ETF. However, opinions are divided among market experts regarding the potential impact of an ETF approval on Bitcoin's short-term price.
Crypto options trading platform Greeks.live analysts suggest that the approval of an ETF might not trigger a significant rally in Bitcoin's price, pointing to the decreasing implied volatility.
In contrast, traders are more optimistic. Trader Scott Melkor observes that Bitcoin is forming a "bull pennant" after consolidating around the $40,000 mark for a month. He forecasts that Bitcoin's price could surge to as high as $54,000 following the SEC's potential approval.
On the other hand, VanEck advisor Gabor Gurbacs offers a more cautious perspective, predicting that the initial phase of a spot Bitcoin ETF may be seen as underwhelming by the market.
While the market remains speculative about the immediate effects of a potential ETF approval, the overarching sentiment is one of optimism for Bitcoin's future, with expectations of substantial stability in the long term.
