The world of cryptocurrencies is currently experiencing a bullish rally in the expectation that the United States authorities will approve the Bitcoin ETF, which – if it comes to fruition – could mean a key step for the future of this market.
The price of the main cryptocurrency, Bitcoin, reached a peak of US$47,100 over the last 24 hours, but then moderated and is now around US$46,700. This is due to the possibility that the SEC, the United States securities and exchange authority, will give approval to several managers to create exchange-traded funds (ETFs) linked to Bitcoin.
Approval of the Bitcoin Spot ETF was expected last week, prompting both sudden enthusiasm and dismay among investors. This translated into strong price volatility. However, now market versions indicate that the new financial instrument could be approved next Wednesday, January 10. If this happens, it would mean an important legitimization for BTC and the entire world of digital currencies, which could be reflected in a significant rise in prices.
Analyst Joel Kruger of LMAX estimated that Bitcoin could quickly rise between 10% and 15% if the ETF is given the green light. Meanwhile, the Bitget Exchange states that the cryptocurrency could reach a price of US$100,000 this year.
In this context, the global capitalization of the crypto market climbed 4.8% in the last 24 hours, bringing its approximate valuation to 1.79 billion.
Meanwhile, the Fear and Greed index, which represents a thermometer of the ecosystem in general, is positioned in an area of ”extreme greed”, with an advance of five points compared to Monday (from 71/100 to 76/100).
As for the prices of other major cryptocurrencies, Bitcoin (BTC) recorded a 4% rise in its price, reaching around $46,730, while Ethereum (ETH) rose 2.1% in the last day, with a price of US$2,302.
Despite the ups and downs seen in recent days, Bitcoin has accumulated an increase of 158.4% in the year according to Coingecko, the site specialized in price monitoring of crypto assets. If the ETF is approved next week, it is expected that the cryptocurrency market will experience a significant increase in value, paving the way for a new era for digital currencies.