Bitcoin’s price shot past $45,000 Tuesday morning as investors anticipate potential regulatory approval of spot bitcoin ETFs in the US this week.
The largest cryptocurrency by market cap soared nearly 6% in 24 hours. Bitcoin hit $45,083 at one point – its highest level since April 2022.
The gains come as the SEC may notify asset managers about bitcoin ETF applications before a January 10 deadline. Analysts say the news of imminent spot bitcoin ETFs in the US is propelling this latest bitcoin rally.
“There’s nothing much happening on the macro side that would lead one to believe it’s anything but a crypto-related dynamic,” said crypto market maker Keyrock.
Bitcoin to Top $50K on ETF Hopes
Some analysts predict Bitcoin still has room to run this week on ETF excitement.
“Although we are not seeing minting activities at Tether increasing, the fact that prices are rallying might be a sign that there are no sellers in the market and prices are squeezing higher,” said Matrixport.
Matrixport believes bitcoin can clear $50k in January on the futures market squeezing spot prices. Other experts say bitcoin may keep climbing despite potential “sell the news” pressure after ETF approvals.
While a short-term pullback is possible post-ETF launch, most see 2024 as very bullish for Bitcoin between rising institutional demand and halving-driven scarcity.
