Bitcoin Starts 2024 with a Strong Push Towards $46,000, Boosted by Anticipation of SEC Approval for Spot Bitcoin ETFs

The price of bitcoin (BTC) has started the year 2024 with a strong surge, gaining over 7% in just 24 hours and approaching $46,000. This marks the highest level for the cryptocurrency since April 2022. The driving force behind this upward movement is believed to be the anticipation of the U.S. Securities and Exchange Commission (SEC) approving several spot bitcoin exchange-traded funds (ETFs).

According to a report by Reuters, the SEC could potentially begin notifying ETF sponsors as early as Tuesday that their applications have been approved. This news has attracted the attention of traditional finance giants such as BlackRock and VanEck, who are among the 13 companies vying for the opportunity to launch the first regulated spot bitcoin product in the United States. The expectation is that the approval of these ETFs will generate increased buying pressure for bitcoin in the coming months.

However, market analysts and commentators have mixed opinions on the potential impact of ETF approval. Ryan Lee, chief analyst at Bitget Research, stated that some analysts from cryptocurrency trading platforms believe that even if the ETF is approved, bitcoin may not experience an immediate significant rally. On the other hand, influential trader Scott Melker predicts that bitcoin could surge to $54,000 in the next few days once the SEC gives its approval. Matrixport also predicts that BTC will rise to $50,000 within a month after the launch of the BTC spot ETF in January.

At the time of writing, bitcoin has surpassed the $45,000 mark and is currently trading at $45,707, according to Indices data. The positive momentum is not limited to bitcoin alone, as other cryptocurrencies are also experiencing upward movement. Ether (ETH) is up by 4%, while solana (SOL) and avalanche (AVAX) have seen gains of up to 12%.

It is important to note that the information provided in this article is based on available data and market analysis. The future performance of bitcoin and other cryptocurrencies is subject to various factors and cannot be guaranteed. Investors and traders are advised to conduct their own research and exercise caution when making investment decisions.

UPDATE (Jan. 2, 10:07 UTC): The price of bitcoin has been updated, and the gains of ether, solana, and avalanche have been mentioned in the last paragraph.

UPDATE (Jan. 2, 10:37 UTC): A quote from analyst Ryan Lee has been added in the fourth paragraph.

In conclusion, the bitcoin price has started the year 2024 on a positive note, driven by the anticipation of SEC approval for spot bitcoin ETFs. While opinions on the immediate impact of ETF approval vary, the overall sentiment is optimistic, with predictions of further price increases in the near future. The broader crypto market is also experiencing upward movement, with other cryptocurrencies following bitcoin’s lead. As always, investors should exercise caution and conduct thorough research before making any investment decisions.