Bitcoin price is still in the green several days after rumors regarding the US Securities and Exchange Commission (SEC) approving a BTC spot exchange-traded fund (ETF) proposal by BlackRock spread across the crypto space, propelling the largest digital asset to $30,000.
The brief rally following the fake news showed just how vital a spot BTC ETF is to the next bull run. Although Bitcoin price pulled back immediately from $30,000, bulls have managed to uphold support at $28,000.
Although relatively unchanged over the last 24 hours, Bitcoin is trading at $28, 440 backed by $10 billion in trading volume and $555 billion of market capitalization.
All eyes have turned to the SEC’s likely approval of the first Bitcoin spot ETF in the US, especially after the agency gave the go-ahead to a bunch of Ethereum futures ETFs earlier this month.
A spot BTC ETF is a big deal for the cryptocurrency sector because it would allow traditional retail and institutional investors to seek exposure to the digital asset without actually holding the cryptocurrency.
In other words, investors would not be required to navigate the complexities of crypto exchanges or wallet setups but simply seek exposure by buying shares of a BTC ETF via a conventional brokerage account.
It is this ease of access that makes the approval of a BTC spot ETF a game changer for the crypto industry, hence the recently released report by Matrixport could trigger a significant upswing in the price of Bitcoin to $42,000 if the SEC says yes to the proposal by BlackRock.
Chinese crypto journalist, Wu Blockchain while sharing the report said that “an optimistic estimate is that with an inflow of $50 billion money, Bitcoin may rise to $56,000.”
According to the Matrixport report, a survey of “the 15,000-strong US registered investor advisor (RIA) community overseeing around $5 trillion,” revealed a potentially massive $50 billion inflows following the approval of the spot ETF.
“If Tether’s market cap increases by $24 billion, acting as a proxy for potential ETF inflows, Bitcoin’s price would rise to $42,000, representing a conservative estimate. With a larger influx of $50 billion (1% allocation from RIAs), Bitcoin could potentially rally to $56,000,” the Matrixport report stated.
Bitcoin price is squarely in the hands of the bulls with the Moving Average Convergence Divergence (MACD) indicator flashing a buy signal on the daily chart. The price is also sitting on top of all the bull market moving averages, starting with the 21-day Exponential Moving Average (red), the 100-day EMA (blue), and the 200-day EMA (purple).
If bulls continue to uphold support at $28,000, more retail traders are likely to be convinced to seek exposure to Bitcoin—not afraid of capitulation due to the positive outlook for gains above $30,000.
As of now, a break past $30,000 could imply that Bitcoin could retest its 2023 high of $31,860 – a resistance expected to determine if bulls will push to $42,000 or if the price will continue to wobble in the region up to the primary support at $25,000.
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