The year 2024 has begun with a remarkable surge in the price of Bitcoin (BTC), which has climbed over 7% in just 24 hours, reaching nearly $46,000. This marks the highest level since April 2022 and sets an optimistic tone for the crypto market in the new year.
One significant driver behind this surge has been the growing anticipation surrounding the potential approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC).
Recent reports, including one from Reuters over the weekend, suggest that the regulatory agency may soon begin notifying ETF sponsors of their pending approvals. This has led to a wave of optimism in the market, with 13 prominent companies, including financial giants like BlackRock and VanEck, eagerly waiting to introduce the first regulated spot Bitcoin product in the United States.
However, opinions within the crypto community vary on the immediate impact of ETF approval. Ryan Lee, the chief analyst at Bitget Research, notes that some analysts predict Bitcoin might not experience an immediate significant rally even if the ETF gets approved.
Conversely, influential trader Scott Melker is optimistic, predicting a surge to $54,000 in the days following SEC approval. Matrixport, another crypto financial services platform, suggests that Bitcoin could rise to $50,000 within a month after the ETF’s approval in January.
As of now, Bitcoin has crossed the $45,000 mark and is currently trading at $45,707. Simultaneously, the broader cryptocurrency market has also witnessed gains, with Ether (ETH) up by 4% and other altcoins like Solana (SOL) and Avalanche (AVAX) registering gains of up to 12%.
The bullish momentum in the crypto market has translated into significant pre-market gains for companies closely associated with Bitcoin. As Bitcoin surpasses $45,000 for the first time in 21 months, several U.S.-traded firms have benefited from this surge.
Prominent companies, including Coinbase (COIN), MicroStrategy (MSTR), Marathon Digital (MARA), and Riot Blockchain (RIOT), have seen their stock prices surge in pre-market trading.
Coinbase, for instance, has recorded a 6.34% increase, reaching $184.95, while MicroStrategy has seen a gain of over 9% at $689.84. Marathon and Riot have both witnessed gains exceeding 10%.
The excitement around these companies’ stock prices reflects the increasing anticipation of a spot Bitcoin ETF being listed in the United States. Reports suggest that the SEC could soon inform ETF sponsors of their application approvals, potentially driving further enthusiasm in the market.
Bitcoin’s recent surge, which has propelled it to over $45,800, has ignited hopes for more gains in 2024. Matrixport, in a recent analysis, has presented a compelling case for further price appreciation, citing several catalysts at play.
One of the most significant factors is the potential approval of a spot Bitcoin ETF, which may defy market expectations by coming to fruition earlier than anticipated.
Matrixport believes that such an approval could lead to a significant uptick in Bitcoin prices, establishing it as a legitimate asset class for institutional portfolios and potentially serving as collateral for other asset acquisitions.
Additionally, Matrixport highlights the possibility of a Bitcoin halving event expected in April 2024, which could trigger a substantial price move. Historical data suggests that Bitcoin tends to rally strongly during halving cycles, coinciding with the U.S. election cycle.
Drawing parallels with the traditional stock market, Matrixport notes a similar pattern of strength during U.S. election years, further reinforcing the potential alignment of bullish trends in both crypto and traditional markets.
All these factors combined could propel Bitcoin above the $50,000 mark by January 2024, setting an ambitious yet reasonably attainable goal for the cryptocurrency.
