Bitcoin has surged past the $38,000 threshold for the first time in 17 months, marking a significant 5% gain within the last week. The cryptocurrency's rally comes amid heightened anticipation that the U.S. Securities and Exchange Commission (SEC) may soon approve a spot Bitcoin exchange-traded fund (ETF), which has been a long-awaited milestone for crypto enthusiasts.
Despite recent setbacks, such as the SEC delaying decisions on the ETF applications from Hashdex and Grayscale, Bitcoin's value has shown resilience. These delays have not dampened market optimism, as evidenced by the continued upward trajectory of Bitcoin's price.
Investors are also closely watching Franklin Templeton's Bitcoin ETF application, which faces an impending deadline today. While this decision is on the horizon, other spot ETF filings are looking at January 2024 deadlines. Analysts at Bloomberg Intelligence have projected that approvals for these spot ETFs could come as early as the first week of January 2024, potentially making it easier for both institutional and retail traders to gain exposure to Bitcoin.
The potential for increased institutional demand is a significant factor in the bullish outlook for Bitcoin. The approval of spot BTC ETFs is anticipated to simplify the process for investors to add Bitcoin to their portfolios, which could lead to further price increases due to heightened demand.
Adding to the positive sentiment is data from BTCDirect indicating that a substantial portion of Bitcoin's supply remains unmoved. Specifically, 69% of the total supply has not seen any movement over the past year, contributing to a decrease in circulation volume and selling pressure. This static supply is recognized as a key support for Bitcoin's recent price appreciation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.