The possibility of the U.S. Securities and Exchange Commission (SEC) approving the first spot Bitcoin Exchange-Traded Fund (ETF) has been the subject of recent market speculation. As of Thursday, market analyst Alex Krüger forecasted a 70% likelihood of this happening in January 2024, suggesting that traders may employ a "Sell the News" strategy in response. Krüger also projected that, if approved, Bitcoin could reach new year highs within a week.
In addition to Krüger's predictions, Steven Schoenfield, another market expert, anticipates that an approval could occur within the next six months. These predictions signal a potentially significant shift in cryptocurrency regulation and acceptance by traditional financial institutions.
The discussion around Bitcoin ETFs isn't the only development in the cryptocurrency space. According to Kashif Raza, there are currently 16 spot ETF applications under review by the SEC, including four specifically for Ethereum. This points to an increasing interest in broadening the range of crypto-based financial products available to investors.
This week also saw Bitcoin experiencing a 5% rise, pushing it closer to surpassing the $30,000 mark. Concurrently, the correlation between Bitcoin and the DXY US Dollar Index reached a 10-month peak. This relationship suggests a possible rally in 2024 if Bitcoin continues its upward trajectory.
These developments come amidst a backdrop of shifting macroeconomic factors that continue to influence the global cryptocurrency market. The potential approval of Bitcoin and Ethereum ETFs could mark a significant milestone in integrating cryptocurrencies into conventional investment portfolios.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.