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Bitcoin's value surges on potential SEC approval of spot ETFs

Published 11/09/2023, 10:34 PM
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Bitcoin's value has been on a surge recently, fueled by expectations of the U.S. Securities and Exchange Commission's (SEC) potential approval of twelve spot Bitcoin ETF applications. According to Bloomberg research, there is a window from Today, November 9, to November 17 during which all applications could be approved, with a 90% chance of at least one Bitcoin ETF approval before January 10, 2024.

The cryptocurrency is now nearing the $37.3k resistance level and could potentially reach the $40k mark, following a Bullish Pennant pattern and a Golden Cross on the BTC/USD daily price chart at the end of October 2023. This pattern triggered a $3,000 rally in Bitcoin's value.

The anticipation for the SEC's approval has also influenced the strategies of new market players. The newly introduced Bitcoin ETF Token (BTCETF), launched its presale on Tuesday, November 7, demonstrating commitment to investors by dedicating 25% of its total coin supply to staking rewards and implementing a burn tax on 5% of every transaction. Furthermore, it will burn 25% of its total supply upon meeting certain roadmap goals.

This surge in Bitcoin's value is despite high levels of open interest causing market volatility. On Wednesday, November 8, these open contracts reached a six-month peak but Bitcoin still recorded growth. These contracts could influence future price fluctuations.

The influence of BlackRock (NYSE:BLK)'s spot Bitcoin ETF listing on the DTCC website cannot be overlooked - it caused a significant 14% single-day price surge in Bitcoin back on Sunday, October 24.

Looking ahead, the approval of spot ETFs could catalyze further growth in Bitcoin's value, especially as it nears its 'halving' event in late April 2024 which will halve the miners' block reward to 3.125 BTC. However, if the ETFs are not approved, Bitcoin might drop to $32.4k, as depicted on TradingView charts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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