Blockchain News

Bitcoin Touches 18-Month High, Goes Past $41.6k

Bitcoin's recent breach of the $40,000 barrier indicates a potential shift in market dynamics, driven by anticipation of spot Bitcoin ETFs.

Bitcoin has soared past $41,600 during the Asian business day, marking its highest point in 18 months, with more than 5% rise in 24 hours. The surge, unprecedented since April 2022, represents a significant recovery from the aftermath of the Terra crash.

Bitcoin 24-hr price chart (Source: CoinMarketCap)

Bitcoin's ascent to this milestone follows a close encounter with the $40,000 threshold in recent days. Parallel to this, Ether (ETH) mirrored this bullish sentiment, reaching $2,240 with a similar percentage rise over the past 24 hours.

Waiting on SEC Approval

As per reports, fueling Bitcoin's recent rally is the widespread anticipation within the industry regarding spot Bitcoin ETFs. These ETFs, set to trade Bitcoin at its real-time price, are widely expected to gain regulatory approval in the coming months. 

Analysts speculate that the recent SEC request for public comments indicates a potentially accelerated timeline for Bitcoin ETF approval.

Despite numerous filings from major asset managers like BlackRock, Fidelity, and others, the SEC has yet to greenlight a Bitcoin ETF. Noteworthy contenders, including Swiss asset manager Pando Asset, have recently filed S-1 forms with the SEC, seeking approval for spot Bitcoin ETFs.

Bitcoin vs. Global Stocks

Bitcoin, the pioneer cryptocurrency, is now flexing its muscles against global big-cap stocks. On December 4, the cryptocurrency's market cap surpassed Warren Buffet's conglomerate holding company Berkshire Hathaway, surpassing $800 billion.

Further, Markus Thielen, Head of Research at Matrixport, offers optimistic projections for Bitcoin's future. Taking historical post-bear market bull cycles and upcoming Bitcoin halving events into account, Thielen suggests Bitcoin could reach over $60,000 by April next year and soar as high as $125,000 by the end of 2024.

Worth noting that analysts from Bloomberg's ETF team foresee a high likelihood of simultaneous approvals for all pending Bitcoin ETF bids by January 10

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