Bitcoin is currently exchanging hands at $45,724.72. This is an increase of 7.16% in the last 24 hours. A surge in the trading value of BTC has sparked interest in the minds of crypto enthusiasts all over the world. The reason is that BTC is now estimated to reach the milestone of $50k by the end of this week.
What has caused the price to soar is the anticipation of the SEC approving applications for the Spot Bitcoin ETF. If approved, 14 asset managers are expected to launch their respective products and enable traders and inventors to participate in the structured form of crypto investment.
The US Securities and Exchange Commission is expected to approve applications by January 10, 2024.
For the first time since April 2022, Bitcoin has surpassed the $45k milestone. Prices tend to rise when demand is high and supply is scarce. Conversely, there is a situation in which the quantity of sellers falls short of the quantity of customers. While there is a lot of excitement surrounding the approval of the Spot Bitcoin ETF, it is also probable that some traders are holding onto their Bitcoin portfolios for the long term and are reluctant to sell their holdings at the moment.
This is evident from the fact that the accumulation of crypto tokens has often paid out well to investors. For instance, anyone who added Bitcoin to their portfolios when it was at $20k has already earned a decent margin.
Asian markets were one of the first locations to open their Tuesday mornings with a prevailing sense of optimism. Bitcoin was at $45,083 in the morning in Hong Kong.
Anticipation around the approval of Bitcoin ETF has been confirmed by experts. Justin d’Anethan, the Head of APAC Business Development at Keyrock, has said that firms like BlackRock and Fidelity confirming the names of brokers who would support their BTC operations solidifies the narrative that the SEC is soon going to approve all the applications, most of which were re-submitted with revisions to meet the recommendations of the Commission.
Markus Thielen, the Head of Research at Matrixport, has echoed a similar sentiment. Markus has said that there may not be minting activities at Tether, but the price is surely increasing. They have added that this could be because the market lacks enough sellers to give away their tokens.
Joe Caselin, the Head of Institution Marketing at BIT, is confident that the prices of Bitcoin will continue to rise despite the ongoing setup of buying the rumor and selling the news.
Assuming Spot Bitcoin ETF goes unaffected in the market, there is still a chance that Bitcoin Halving will factor in to fuel the rise in value. If Bitcoin plays a good sport, other tokens will have the same effect, causing their prices to soar as well. ETH, at $2,416.10, is the first in line to feel the positive impact.