Key Points:
Bitcoin price hits a 2-year high on ETF approval hopes, climbing 4% to $44,844.
Bitcoin's value surges over 15% since December, fueled by expectations of a spot ETF approval.
Traders exhibit FOMO, buying on Jan 1; optimism prevails, with expectations for Bitcoin to touch $50,000 amid spot ETF
Bitcoin price has surged past the $45,000 mark, reaching its highest value in almost two years, propelled by heightened anticipation surrounding the potential approval of an exchange-traded fund (ETF) directly investing in the leading cryptocurrency.
The digital asset experienced a remarkable 4% spike, hitting levels not seen since April 6, 2022, and trading at $44,844 as of 9:45 a.m. Singapore time. Concurrently, other cryptocurrencies, including Ether, the second-largest by market capitalization, witnessed gains of up to 2.6%.
FOMO and $50,000 Predictions
The recent bullish trend in Bitcoin price reflects a more than 15% increase since the beginning of December, driven by mounting expectations surrounding a critical event: the awaited decision by the US Securities and Exchange Commission (SEC) regarding the approval of a spot ETF for Bitcoin. With a looming January 10 deadline for the SEC's verdict, traders in the US and Europe are demonstrating a fear of missing out (FOMO), prompting a surge in buying activities, notably on the first day of the New Year.
Hayden Hughes, co-founder of the social trading platform Alpha Impact, highlighted the phenomenon, stating that investors are eagerly making purchases in anticipation of the pending approval.
As Bitcoin enthusiasts await the SEC decision, there is a prevailing optimism that the cryptocurrency could soon breach the $50,000 mark, fueled by the positive sentiment surrounding the potential introduction of a spot ETF.
The resurgence of Bitcoin over the past 12 months has been underpinned not only by ETF expectations but also by a broader risk-on sentiment. This sentiment has been fueled by anticipated declines in interest rates in the United States. The recent rally has, to some extent, ameliorated the impact of a significant crash in 2022, which had reverberations throughout the crypto industry. However, Bitcoin remains below its pandemic-era peak in 2021, which approached $69,000.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
