BTC Blasts Past $47K as Bitcoin ETF Excitement Gets Feverish
Bitcoin could rally 10%-15% more in case the SEC approves spot bitcoin ETFs, LMAX strategist Joel Kruger noted.
Bitcoin Surges Above $47K on Bitcoin ETF Anticipation
Bitcoin (BTC) reached a new milestone on Monday, surpassing $47,000 for the first time since April 2022. The surge in price comes as investors eagerly await the approval of a spot-based Bitcoin exchange-traded fund (ETF) in the U.S.
During Asia morning hours, BTC rose sharply from $43,200 to a fresh 19-month high of $47,192 during the U.S. trading session. This represents a gain of almost 7% over the past 24 hours.
Market observers predict that the approval of spot-based Bitcoin ETFs could significantly expand the investor base for the asset and attract large inflows. Consequently, if the U.S. Securities and Exchange Commission (SEC) approves these vehicles, Bitcoin's price could experience a further rally of 10-15%, according to LMAX Group market strategist Joel Kruger.
Bitcoin ETF Decision Expected This Week
The excitement surrounding the potential approval of spot-based Bitcoin ETFs stems from the anticipation of a regulatory decision expected sometime this week. If approved, applicants such as BlackRock, Fidelity, and Grayscale would have the opportunity to offer these ETFs to investors in the U.S.
To support their applications, these asset management giants recently submitted updated S-1 filings to the SEC, and disclosed the fees they would charge investors. The industry is waiting anxiously for the SEC's decision, with many expecting approval and a subsequent surge in Bitcoin's price.
Implications of an SEC Approval
In the event of an SEC approval for spot-based Bitcoin ETFs, market analyst Joel Kruger suggests that Bitcoin's price could rally even higher. He believes that the approval could trigger a 10-15% rally, driven by sidelined capital that would enter the market.
However, if the approval does not materialize, there may be a correction in Bitcoin's price, although strong support is expected above $30,000. Market projections suggest that even without the approval, Bitcoin is likely to remain resilient.