Bitcoin Reattains 20-Month High, Crosses $45k in 2024 Ahead of BTC Spot ETF Approval

Key Takeaways:

• Bitcoin Price Surpasses $45,000 Mark: Bitcoin price’s recent surge above $45,000 signals a momentous achievement after almost two years.
• ETF Approval Anticipation: The market is abuzz with anticipation regarding the US Securities and Exchange Commission’s (SEC) imminent decision on a spot Bitcoin ETF
• Divergent Market Predictions: Market analysts and influencers express diverse opinions on Bitcoin’s potential price trajectory post-ETF approval. Some predict a subdued immediate rally due to declining implied volatility, while others foresee a bullish scenario, speculating prices soaring to $54,000 after SEC approval.
• Historical Significance of Bitcoin Price Surge: This surge beyond the $45,000 threshold marks a crucial moment in Bitcoin price history, indicative of renewed interest and potential legitimacy within the crypto space.

Bitcoin price has surged above $45,000, marking a significant milestone not witnessed in nearly two years. This surge coincides with the mounting anticipation of the approval of a landmark spot Bitcoin exchange-traded fund (ETF) in the United States. The rally from $42,000 on January 1 signifies an impressive 6% surge in the last 24 hours and an outstanding 170% growth in the past year, based on CoinMarketCap data.

Read More: Bitcoin Price Prediction

BTC/USD | Source: TradingView

This sudden surge propels Bitcoin beyond its highest price point in 2023, establishing a significant new yearly high within just the first two days of 2024. The market’s attention is fixated on the imminent decision by the US Securities and Exchange Commission (SEC) regarding 14 pending applications for a spot Bitcoin ETF, spurring this recent price rally.

The last time Bitcoin traded above $45,000 was nearly 22 months ago in April 2022. Subsequently, it navigated a prolonged bearish phase, descending to as low as $15,600, as per data from TradingView.

The potential approval of a spot Bitcoin ETF has sparked diverse predictions about its immediate impact on Bitcoin’s price trajectory. Some analysts foresee a subdued rally upon approval, citing diminishing implied volatility on Bitcoin options. In contrast, enthusiasts like Scott Melkor express optimism, highlighting the formation of a potential “bull pennant” following a consolidation phase around the $40,000 mark. Melkor speculates a potential surge to $54,000 post-SEC approval.

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Gabor Gurbacs, an advisor at VanEck, acknowledges the possibility of an initial market letdown but predicts significant inflows totaling trillions of dollars into ETF products over the coming years.

The market sentiment remains divided, with varying expectations about the impending ETF approval and its immediate impact on Bitcoin’s price. As the decision date approaches, the crypto community eagerly awaits potential market reactions and the transformative implications of a potential spot Bitcoin ETF approval in the United States.

This surge beyond the $45,000 threshold signifies renewed enthusiasm within the crypto space, positioning Bitcoin at a crucial juncture. The impending ETF decision stands as a litmus test, potentially influencing Bitcoin price trajectory and solidifying its position as a legitimate investment avenue.

While this surge marks a historical high, it also underscores the volatility inherent in crypto markets. Investors and market observers remain cautious, recognizing the potential for swift price fluctuations amidst regulatory decisions and market sentiments.

As anticipation mounts and the market braces for a potential milestone, all eyes remain fixed on the SEC’s decision and its immediate impact on Bitcoin’s price movements. The next few days hold immense significance, potentially shaping Bitcoin’s trajectory in 2024 and beyond.

Source: CoinTelegraph