As the new year kicks off, Bitcoin (BTC) has seen an impressive 7% gain within 24 hours, reaching almost $46,000 – its highest level since April 2022.
The driving force behind this surge continues to be the widespread speculation that the U.S. Securities and Exchange Commission (SEC) is on the verge of approving several spot bitcoin ETFs, with expectations of an announcement as early as this week. According to a recent Reuters report, the SEC might start notifying ETF sponsors about the approval of their applications as soon as Tuesday.
Among the contenders in the race for approval are heavyweight traditional finance companies such as BlackRock and VanEck. If greenlit, this move could significantly boost bitcoin's buying pressure over the coming months, marking the introduction of the first regulated spot bitcoin product in the U.S. Despite the optimistic outlook, opinions among market commentators and analysts remain divided regarding the potential impact of ETF approval.
Ryan Lee, Chief Analyst at Bitget Research, notes the diversity of perspectives within the crypto trading community, stating, "Some analysts from cryptocurrency trading platforms believe that even if the ETF is approved, Bitcoin may not immediately experience a significant rally." Conversely, influential trader Scott Melker predicts a surge to $54,000 in the days following SEC approval. Matrixport also foresees a rise to $50,000 within a month after the potential approval of the BTC spot ETF in January.
Bitcoin has already breached the $45,000 mark, currently trading at $45,707, according to CoinDesk Indices data. The broader cryptocurrency market is also experiencing upward movement, with Ether (ETH) showing a 4% increase, and Solana (SOL) and Avalanche (AVAX) recording gains of up to 12%."