The value of Bitcoin (BTC) has soared to over $45,000, marking its highest point in nearly two years, amid strong anticipation of the approval of a spot Bitcoin exchange-traded fund (ETF).
Starting the year at $42,000, Bitcoin has surged over 6% in the past 24 hours and an impressive 170% over the last year, according to CoinMarketCap. Notably, the current price has surpassed all figures witnessed throughout 2023, reaching a new annual peak within the first two days of 2024.
This surge in Bitcoin's price coincides with the market eagerly awaiting the Securities and Exchange Commission's (SEC) decision on 14 pending spot Bitcoin ETF applications. The anticipation of these approvals or rejections is steering market sentiment.
The last time Bitcoin was trading above the $45,000 mark dates back nearly 20 months ago, on April 5, 2022, when it settled at $45,241. Following that period, Bitcoin entered a prolonged bear market, experiencing a substantial decline to $15,600, as per TradingView data.
Experts in the cryptocurrency market hold differing opinions on the potential immediate impact of ETF approval on Bitcoin's value. Analysts at Greeks.live, a crypto options trading platform, suggest that Bitcoin might not experience a significant surge on the approval day due to a decrease in implied volatility in Bitcoin options. Conversely, Melkor forecasts a potential surge in Bitcoin's value to $54,000 within days following the potential SEC approval.
Meanwhile, Gabor Gurbacs, an advisor at VanEck, holds a nuanced view, predicting that the initial days of a spot Bitcoin ETF may be perceived as "disappointing" by broader market standards. However, Gurbacs remains optimistic, believing that the product will eventually attract trillions of dollars' worth of investments in the years to come, signaling a significant influx of funds into the market.
