Bitcoin has commenced the new year with an impressive rise, surpassing the $45,000 threshold for the first time since the early days of April 2022. The cryptocurrency has experienced a 6% increase in value in the initial hours of the year, indicating a bullish trend.
This upward movement is part of a recent pattern primarily driven by heightened expectations regarding the U.S. Securities and Exchange Commission’s (SEC) potential approval of several spot Bitcoin Exchange-Traded Funds (ETFs).
Presently, Bitcoin’s value stands at $45,364.58, marking a remarkable 6.63% growth in the past 24 hours.
The SEC’s Influence
The driving force behind Bitcoin’s current surge is anticipating the SEC’s approval of spot Bitcoin ETFs. A recent report by Reuters, released over the weekend, suggested that the SEC might start informing ETF sponsors about their approval as early as today. This revelation has spurred positive market sentiment, reflecting an optimistic outlook on Bitcoin’s mainstream adoption and recognition.
Potential for a Price Correction
Notwithstanding Bitcoin’s current upward trend, several leading market analysts have cautioned that the cryptocurrency might undergo a price correction following the approval of a Bitcoin ETF issuer.
As the new year unfolds, market observers will keenly monitor Bitcoin’s reaction to the changing regulatory environment to see if the current positive trend continues or shifts into a correction phase.
Source: https://coinpedia.org/news/bitcoin-price-surge-above-45k-what-next-for-btc-price/