According to Bloomberg, Bitcoin dipped to $46,770 on Tuesday in Singapore after a 6.5% jump on Monday in the US. The cryptocurrency's new year climb now stands at 10%, contrasting with drops over the same period in previous years. Traders are anticipating greater adoption of the digital token by mainstream investors via exchange-traded funds (ETFs), with Bitcoin up 172% in the past 12 months. Participants seem to be coming around to thinking that the initial flows will actually exceed expectations, according to market analysts.
Applicants amended forms on Monday in the US in a final push to offer spot Bitcoin ETF products more than a decade after the first attempt. SEC Chair Gary Gensler has expressed concerns about the potential for market manipulation and fraud in the cryptocurrency space. However, the SEC lost a key legal fight against crypto asset manager BlockFi last year, which may have opened the door for Bitcoin ETFs. Critics argue that the products pose a risk for investors due to the volatility of digital assets and their association with illicit activity.
The advance in Bitcoin has also lifted the digital-asset market more broadly, supporting smaller tokens like Ethereum and Solana. Some crypto watchers wonder if Bitcoin is due for a pullback if and when SEC approval finally arrives, as speculators may decide to take profits from the token's rally. However, there are no signs of a so-called sell-the-news event just yet, according to market observers. Looking past short-term price fluctuations, the main result of Bitcoin spot ETF approval will be the marketing machine behind greater Bitcoin awareness, powered by some of the largest names in traditional finance.
