A week after breaking through a key resistance level, Bitcoin’s price gains have slowed. However, the rally may still be in its early stages, with Bitcoin poised to see further profits in the coming months.
As of this writing, the cryptocurrency is trading at $43,300, recovering to levels seen before plunging to yearly lows in 2022. On the weekly chart, BTC is up 15%, followed by Ethereum, while other altcoins lag behind the two most famous cryptocurrencies.
Spot Bitcoin up 15% in May, eyes on potential SEC approval
The crypto market has witnessed another remarkable surge in Bitcoin (BTC), with a 15% increase in just the first week of December. According to QCP Capital's latest market update, this growth takes BTC's year-to-date (YTD) gain to 260 %.
This exponential rise is largely attributed to expectations of the U.S. Securities and Exchange Commission (SEC) approving a spot Bitcoin exchange-traded fund (ETF).
On September 1, the SEC announced November 1, 2024 as the final deadline for rebuttal comments. The timeline sets the stage for possible approval next week.
While QCP Capital humorously noted that the significance of the anniversary of Bitcoin’s genesis block 15 on March 15, 2024 may not go unnoticed by the SEC, “the market has certainly taken notice.”
As Bitcoin approaches the $45,000 mark, investors are weighing the extent to which this news is already priced in. The post-ETF approval period is critical because the true impact depends on the actual flows of the ETF during its initial trading week. If expectations don't match reality, there could be "sales press" events next year.
Asian buyers re-enter the market, when will altcoin season begin?
The March 1 announcement also sparked new interest from Asian buyers, who had been less active in the previous month. It’s worth noting that much of the recent spot gains have occurred during U.S. trading hours, as investors in the country built positions in preparation for the SEC’s announcement.
As the market prepares for the launch of spot ETFs, investors won’t find themselves lacking in options. With 13 spot ETF filings in the pipeline, as well as several other leveraged and options-based ETF filings, the traditional financial ecosystem surrounding BTC (and soon ETH) is about to expand significantly.
QCP Capital expects that in a market characterized by low costs and narrow spreads, structured products may become a key alpha-generating asset class, similar to other markets such as gold. The trading desk stated:
This means that if BTC takes the top spot on launch day, it won’t stop the traditional financial ecosystem around BTC from booming, soon to be followed by ETH – something we’ve been writing about for years.
A report from the co-founder of Glassnode suggests that the altcoin industry is already struggling to catch up with current BTC price movements. The current pullback may provide opportunities for smaller coins waiting to benefit from the bullish momentum.
U.S. stocks have been rising for 14 consecutive weeks, and it is normal to adjust7805数字货币2024-02-21