Bitcoin initiated 2024 with a strong surge, surpassing the $45,000 mark for the first time since April 2022. This upward momentum largely stems from the anticipation surrounding potential approvals for spot bitcoin exchange-traded funds (ETFs) expected this month. The SEC is slated to decide on applications from a dozen major financial entities, including BlackRock and Franklin Templeton, aiming to launch ETFs enabling broader access to bitcoin without direct ownership.
Previously, SEC denials based on market manipulation concerns dashed hopes for such approvals. However, recent industry insights suggest a potential shift in the SEC’s stance, raising optimism for a collective green light on these ETFs.
Bitcoin experienced some retracement in its gains on Monday but still maintained a more than 2% increase over 24 hours, with the total market capitalization of cryptocurrencies reaching $1.73 trillion. This bullish trend also buoyed several other cryptocurrencies and bitcoin-associated stocks before a slight pullback.
Despite this positive momentum, Bitcoin remains significantly below its all-time high of $68,789 set in 2021. The market faced a downturn in 2022, influenced by rising interest rates and the collapse of FTX, followed by a resurgence in 2023.
Last year, Bitcoin surged by 164%, largely propelled by hopes pinned on ETF arrivals after significant industry events such as BlackRock’s filing and a favorable court ruling for Grayscale Investments.
Looking forward to 2024, the crypto landscape appears to have overcome major hurdles, marked by the legal action against FTX’s Sam Bankman-Fried and a guilty plea from Binance’s CEO Changpeng Zhao. This has fostered investor optimism for broader acceptance and clearer regulations in the industry.
Another point of excitement is Bitcoin’s upcoming “halving” event in April, which historically triggers bullish market cycles by halving the cryptocurrency’s daily issuance. These factors collectively paint an optimistic outlook for the year ahead in the crypto space.
