Bitcoin Rallies Above $47,000 Ahead of ETF Decision
09 Jan, 2024 ● Coin news
The price of Bitcoin has surged above $47,000 for the first time since April 2022, coinciding with the approaching deadline for the United States Securities and Exchange Commission's (SEC) decision on spot Bitcoin ETFs.
Bitcoin's value rapidly increased from $44,000 on January 8, marking a 6.5% surge in the past 24 hours and a remarkable 177% rise over the last year.
It reached a year-to-date high at $47,284, based on data from CoinMarketCap.
This surge in Bitcoin's price aligns with the anticipation of potential approval by the SEC for one or more of the 14 pending applications for spot Bitcoin ETF products.
Bloomberg analysts have even suggested that a decision could come as early as January 10.
The last time Bitcoin surpassed the $47,000 mark was almost 20 months ago, on April 3, 2022, when it reached a peak of $47,458.
Afterward, it entered a prolonged bear market, with its value plummeting to as low as $15,600.
Market observer Jin noted that Bitcoin had established support at the "21 EMA" and predicted that it was on track to reach $48,000.
Meanwhile, a popular X user known as Byzantine General pointed out that the rapid price movement to $47,000 had liquidated a significant number of short positions.
Data from Coinglass revealed that Bitcoin short-position liquidations exceeded $76 million on that day, with the total still rising at the time of writing. Across different cryptocurrencies, short liquidations amounted to over $112 million.
Many market participants anticipate that the bullish price trend will persist, particularly in response to any news related to the approval of a spot Bitcoin ETF.
This sentiment was evident in Bitcoin's response to the leading BTC ETF contenders engaging in a fee competition, as seen in the latest S-1 amendments, in an effort to attract clients once approval is granted.
Meanwhile, just before the expected approval of a spot Bitcoin ETF, the SEC issued a warning about FOMO (fear of missing out) in crypto investing.
Nevertheless, these products are expected to draw trillions of dollars in inflows over the next few years.