BTC Price On Verge Of Touching $50K Ahead Of Bitcoin ETF Approval?

As voices come out in favor of spot Bitcoin ETF approval chances in January 2024, the Bitcoin (BTC) Price entered the new year with renewed bullish momentum. This comes amid reports stating that the approval may come in the week starting January 8, 2024.

Also Read: Ethereum (ETH) Metrics Hints Readiness for Huge Gains, Is $2500 Possible?

BTC Price: Before & After Approval

In what could be caused by a fear of mission out (FOMO) sentiment among traders and investors, the BTC Price jumped to over $45,000 on Monday, January 1, 2023. The crypto market has largely been optimistic about a potential approval of the spot Bitcoin ETF before January 10, 2024, before which the U.S. Securities and Exchange Commission (SEC) is required to take a decision as part of the Ark 21Shares spot Bitcoin ETF filing. CoinGape reported that a decision on the Ark 21Shares filing was earlier postponed on August 11, 2023.

Accordingly, Reuters reported that the SEC was on path to give the nod to the first ever spot Bitcoin ETF in the United States. The report quoted sources as saying that the SEC officials have already cleared the approval for next week and that the filers may be informed of the same on January 9 or 10, 2024. Given the bullish market sentiment, Matrixport predicted that the BTC Price is primed to reach around $63,140 by April 2024. Incidentally, this timeframe is well placed prior to the Bitcoin Halving event.

Bitcoin Price: The Caution

Earlier, CoinGape reported analyst comments that the BTC price could see retracement to an extent following the Bitcoin ETF approval in January 2024. Some analysts warned that the downside risk for BTC could go as low as $37,000, despite the months long hype around Bitcoin ETF approval for institutional players like Blackrock and Fidelity. Market corrections have been witnessed around key macroeconomic events in the past. Hence, a minor corrective phase after the spot ETF approval may not be ruled out, especially considering the possibility of a gap between date of ETF approval and the launch.

It remains to be seen if the US SEC notifies the approval of all the applications at the same time. Analysts have been predicting that the agency may not choose to give a single applicant the first mover advantage, in the context of multiple financial bigwigs in fray for the spot ETF.

Also Read: Bitcoin (BTC) Halving: Here are 5 Potential Cycles to Watch