Bitcoin: New Peak at $45,000 as SEC Decision on ETF Draws Nearer

The queen of cryptos has recently surpassed a new milestone, breaking through the $45,000 mark for the first time in almost two years. This noteworthy achievement comes just days before the highly anticipated decision by the Securities and Exchange Commission (SEC) regarding the approval of the first Bitcoin spot ETF in the United States.

A Bullish Bitcoin Dynamics Fueled by the Prevailing Optimism

Within 24 hours, Bitcoin’s valuation surged by more than 6%, going from $42,000 to more than $45,093 on January 2nd, 2024, according to CoinMarketCap. The leading crypto had already seen a 170% growth over the year 2023. 

This unprecedented climb allowed Bitcoin to surpass all of 2023’s highs and establish a new significant multi-year peak at the beginning of 2024.

The last time BTC had reached this level was nearly 20 months ago, specifically on April 5, 2022. It had then closed the day at $45,241 before plunging into a severe bear market that saw it fall to $15,600.

What Impact on Prices if the SEC Gives the Green Light?

The current excitement in the crypto market is largely attributed to speculation surrounding the fate of the 14 Bitcoin Spot ETF applications pending with the American regulatory watchdog. The SEC had previously rejected these products, citing risks for investors.

However, the agency could finally pave the way for these coveted index funds that would directly replicate the Bitcoin price.

While some industry players expect only a slight bullish uptick on the day of approval, others are much more optimistic. The popular trader Scott Melkor even anticipates a possible surge past $54,000 in the wake of the approval.

$BTC Daily

Breaking out of the bull pennant after nearly a month of consolidation. The target based on the measured move from the length of the flag is roughly $54,000.

Targets rarely hit, anything can happen. But that's what the chart says. pic.twitter.com/txs5QFJAqI

— The Wolf Of All Streets (@scottmelker) January 2, 2024

VanEck’s advisors believe that significant capital flows will head toward these Bitcoin ETFs, but gradually over several years.

In any case, the approval of a Bitcoin spot ETF in the United States would be a moment of recognition. It would greatly amplify the democratization and adoption of cryptos by the general public and institutional investors. So, it’s a development to be followed closely, with an eagerly awaited outcome starting from next week.