How will the price of Ethereum change after the spot ETF is approved?
Let's review the changes in Bitcoin prices before and after the approval of its spot ETF: The approval date of the Bitcoin spot ETF is January 10, 2024. This approval triggered a significant reaction in the market.
The following is an analysis of the changes in Bitcoin prices over a period of time before and after approval: Price trend before approval:
In late 2023 and early 2024, the price of Bitcoin gradually increased, which was partly driven by the market's expectations for the approval of spot ETFs. According to data, by early January 2024, the price of Bitcoin was close to $46,000.
Reaction on the day of approval: On January 10, 2024, the U.S. Securities and Exchange Commission (SEC) officially approved 11 Bitcoin spot ETFs. Although the market was highly anticipating this news, the price of Bitcoin actually fell slightly on the day of approval, falling to approximately $45,620.
This short-lived pullback was mainly due to the market behavior of "buy the expectation, sell the fact", that is, investors chose to take profits after the announcement of major positive news. Price action after approval: After the approval on January 10, the price of Bitcoin continued to rise and climbed further in the following months. On March 13, 2024, the price of Bitcoin reached an all-time high of $73,084 (Statista) (InvestorPlace).
The emergence of this new high not only reflects the market confidence brought by the approval of the ETF, but is also driven by the continued participation of institutional investors and the increased market demand for Bitcoin. In summary, Bitcoin gradually rose due to market expectations before the approval of the spot ETF, and there was a short correction on the day of approval. It continued to rise in the months after the approval, and finally reached a new historical high of $73,084 on March 13, 2024.
This process reflects the market's high expectations for the approval of the Bitcoin spot ETF and the subsequent market potential. If the price of Ethereum completely repeats the price trend after the Bitcoin ETF is passed (of course it will not), its price trend will be as follows:
Before approval: It is expected that the price of Ethereum may gradually rise to about $4,000 before May 23. On the day of approval: A short-term correction of 1-3%, the price may fall to about $3,880. After approval: The price of Ethereum may continue to rise in the next few months, reaching new highs.
Referring to the rise of Bitcoin, the price of Ethereum may rise by 20-30% in the next few months to reach US$4,500-5,000.
The key is that there are actually other possibilities for approval and disapproval. Approval will only have one possibility of pulling up the market, while disapproval may mean postponing the application until October, which will definitely crash the market. If it is rejected directly, there is only one last option, which is to take legal action, the same way as BTC, which will usher in retaliatory growth.
