The price of Bitcoin experienced a notable surge, surpassing the $45,000 mark, marking its highest level since March 2022. This uptick has captured the attention of cryptocurrency investors, fueling renewed interest in the market. The anticipation of the potential approval of the first Bitcoin ETF in the United States is the key catalyst behind this bullish trend.
Amid a shortened economic week, investors are eager to learn about the minutes of the Federal Reserve’s December meeting, which could shed light on the direction of monetary policy and possible future interest rate reductions. This event, along with reports on trends in the U.S. labor market, has garnered special attention due to its potential impact on the price of Bitcoin.
The cryptocurrency market witnessed a phenomenon of “Bitcoin ETF fever,” with the total market capitalization reaching its highest level in 20 months, surging to $1.82 trillion. Bitcoin leads this rally with a 7.5% increase in a single day, reaching an intraday high of $45,500. Ethereum also grew, achieving a 5% increase to reach $2,389, while various altcoins like Solana, Cardano, Avalanche, and Polkadot recorded gains exceeding 6%.
Divergent Opinions on Bitcoin
The possibility of the approval of a Bitcoin ETF in the United States triggered various predictions and opinions in the market. Some analysts argue that, in the short term, the approval may not result in a significant increase in the price of BTC, citing a decrease in implied volatility in BTC options. However, others, like analyst Scott Melkor, suggest that BTC could experience additional momentum, reaching levels of up to $54,000 in the days following SEC approval.
Intensified speculation about the immediate future of BTC keeps an entire community on edge, eagerly anticipating this long-awaited event. Some investors expect this approval to mark the beginning of a sustained bullish period, while others warn of the possibility of a “buy the rumor, sell the news” scenario. Despite differing opinions, in the coming weeks, market attention will focus on the unfolding events related to Bitcoin ETFs and their impact on the price trajectory of the leading cryptocurrency.