Bitcoin price could climb towards $48,000 target with upcoming US SEC approval on BTC Spot ETF
|- Bitcoin traded above the $44,000 mark on Friday as Fox Business reported that the SEC is likely to approve Spot BTC ETF by January 10.
- Spot Bitcoin ETF approval is expected to usher in institutional capital and demand for BTC, catalyzing gains in the cryptocurrency.
- Bitcoin price eyes $48,000 target with sustained demand for BTC among market participants.
Bitcoin price sustained above $44,200 on Friday. The largest asset by market capitalization held on to its gains from the week as the market ushers in the report of likely Spot Bitcoin ETF approval by the SEC.
According to a Fox Business report, sources close to the SEC revealed that an approval is likely by January 10, 2024.
Also read: Bitcoin price rallies to $44,000 as Spot BTC ETF deadline looms
Daily Digest Market Movers: Spot Bitcoin ETF approval likely by January 10
- Fox Business reports that sources close to the SEC unveiled that according to the recent guidance by the US financial regulator, an approval of the Spot Bitcoin ETF is likely by January 10.
- Bloomberg ETF analyst Jeff Seyffart had predicted a 90% likelihood of Spot Bitcoin ETF approval before January 10.
- The new securities offering is expected to drive institutional demand for the asset and boost capital inflow to BTC funds, in the short term.
- Combined with the upcoming halving scheduled for April 2024, BTC holders expect the asset to yield massive gains next year.
- Regulatory and economic catalysts that are expected to support BTC price gains are:
- Argentina's Minister of Foreign Affairs, Diana Mondino’s confirmation that the country is set to embrace Bitcoin for contractual agreements.
- According to a Reuters report, El Salvador approved an immigration law to grant citizenship to foreigners who donate Bitcoin to government social and economic development projects.
- On-chain metrics reveal a neutral to bearish outlook on Bitcoin, as the supply on exchanges has climbed between December 2 and December 22.
Supply on exchanges. Source: Santiment
- In the past 20 days, the supply on exchanges climbed from 5.36% to 5.61%, further there is a spike in profit-taking by BTC holders, as seen in the Network Realized Profit/Loss data from Santiment.
- Despite profit-taking activities and rising exchange supply of the asset, Bitcoin price continued its climb.
Network Realized Profit/Loss. Source: Santiment
Technical Analysis: Bitcoin price rally to $48,000 likely, BTC clears major resistance
Bitcoin price is currently in an uptrend that started on November 7, 2022. On the weekly chart, BTC price cleared a crucial resistance at $42,349, the 50% Fib level of the decline from the November ‘21 high of $69,158 to the November ‘22 low of $15,541.
BTC price stayed above the $44,200 level, resisting a decline below the $43,000 mark, holding to nearly 3% weekly gains for holders on Binance.
Bitcoin price rally to the 61.8% Fib level of $48,676 is likely, with no major resistance blocking BTC path.
BTC/USDT weekly price chart
A weekly candlestick close below the 50% Fib level at $42,349 could invalidate the bullish thesis for the asset.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
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