Bitcoin price could climb towards $48,000 target with upcoming US SEC approval on BTC Spot ETF


  • Bitcoin traded above the $44,000 mark on Friday as Fox Business reported that the SEC is likely to approve Spot BTC ETF by January 10.
  • Spot Bitcoin ETF approval is expected to usher in institutional capital and demand for BTC, catalyzing gains in the cryptocurrency. 
  • Bitcoin price eyes $48,000 target with sustained demand for BTC among market participants.

Bitcoin price sustained above $44,200 on Friday. The largest asset by market capitalization held on to its gains from the week as the market ushers in the report of likely Spot Bitcoin ETF approval by the SEC.

According to a Fox Business report, sources close to the SEC revealed that an approval is likely by January 10, 2024.

Also read: Bitcoin price rallies to $44,000 as Spot BTC ETF deadline looms

Daily Digest Market Movers: Spot Bitcoin ETF approval likely by January 10

  • Fox Business reports that sources close to the SEC unveiled that according to the recent guidance by the US financial regulator, an approval of the Spot Bitcoin ETF is likely by January 10. 
  • Bloomberg ETF analyst Jeff Seyffart had predicted a 90% likelihood of Spot Bitcoin ETF approval before January 10. 
  • The new securities offering is expected to drive institutional demand for the asset and boost capital inflow to BTC funds, in the short term. 
  • Combined with the upcoming halving scheduled for April 2024, BTC holders expect the asset to yield massive gains next year. 
  • Regulatory and economic catalysts that are expected to support BTC price gains are:
  1. Argentina's Minister of Foreign Affairs, Diana Mondino’s confirmation that the country is set to embrace Bitcoin for contractual agreements.
  2. According to a Reuters report, El Salvador approved an immigration law to grant citizenship to foreigners who donate Bitcoin to government social and economic development projects.
  • On-chain metrics reveal a neutral to bearish outlook on Bitcoin, as the supply on exchanges has climbed between December 2 and December 22. 

BTC

Supply on exchanges. Source: Santiment

  • In the past 20 days, the supply on exchanges climbed from 5.36% to 5.61%, further there is a spike in profit-taking by BTC holders, as seen in the Network Realized Profit/Loss data from Santiment. 
  • Despite profit-taking activities and rising exchange supply of the asset, Bitcoin price continued its climb. 

BTC

Network Realized Profit/Loss. Source: Santiment 

Technical Analysis: Bitcoin price rally to $48,000 likely, BTC clears major resistance

Bitcoin price is currently in an uptrend that started on November 7, 2022. On the weekly chart, BTC price cleared a crucial resistance at $42,349, the 50% Fib level of the decline from the November ‘21 high of $69,158 to the November ‘22 low of $15,541. 

BTC price stayed above the $44,200 level, resisting a decline below the $43,000 mark, holding to nearly 3% weekly gains for holders on Binance. 

Bitcoin price rally to the 61.8% Fib level of $48,676 is likely, with no major resistance blocking BTC path. 

BTC

BTC/USDT weekly price chart 

A weekly candlestick close below the 50% Fib level at $42,349 could invalidate the bullish thesis for the asset.

Cryptocurrency prices FAQs

How do new token launches or listings affect cryptocurrency prices?

Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.

How do hacks affect cryptocurrency prices?

A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.

How do macroeconomic releases and events affect cryptocurrency prices?

Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.

How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?

Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

PEPE hits new all-time high, meme coin could extend gains

PEPE hits new all-time high, meme coin could extend gains

PEPE hit a new all-time high at $0.00001725 on Monday, May 27. The frog-themed meme coin noted a surge in active addresses and social dominance amidst rising price. 

More PEPE News

Fantom price could rally 20% but needs to test major support level first

Fantom price could rally 20% but needs to test major support level first

Fantom (FTM) price has lost some steam after the sharp increase registered from May 15 to May 20 but looks poised for further gains, technical indicators and on-chain data show.

More Fantom News

FLOKI, MAGA tokens post double-digit rally with bullish on-chain metrics

FLOKI, MAGA tokens post double-digit rally with bullish on-chain metrics

Crypto intelligence tracker Lookonchain identified a large wallet investor who has accumulated FLOKI (FLOKI) and MAGA TRUMP (MAGA) tokens, in exchange for Ether, since April 8. 

More Cryptocurrencies News

XRP ETF could gain approval in 2025, Ripple holders await lawsuit ruling

XRP ETF could gain approval in 2025, Ripple holders await lawsuit ruling

Ripple (XRP) holders are awaiting a ruling in the Securities and Exchange Commission’s (SEC) lawsuit against the payment remittance firm. A court ruling was awaited in May 2024, however there is no update, as of Monday, May 27. 

More Ripple News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP