As the year draws to a close, Bitcoin (BTC) has been the crypto market’s standout performer following the token’s price surge above $40,000. Analysts believe that the potential approval of a spot Bitcoin exchange-traded fund (ETF) in January 2024 would signify a golden phase for the leading digital asset.
Bitcoin ETF Frenzy
According to TradingView data, Bitcoin’s price rebounded, reaching local highs of $43,456 after the day’s trading ended. Bitcoin quickly gained momentum from its uncertain position earlier this week.
This momentum followed reports that prominent asset manager BlackRock is close to launching the first US-based spot Bitcoin ETF after changing its redemption policy to include BTC as an option. According to BlackRock’s updated S1 filing with the US Securities and Exchange Commission (SEC), when a shareholder exchanges some or all of their shares for the underlying BTC, it will not trigger a taxable event.
Hence, this policy change could signal a shift in how investments in Bitcoin-related products are treated, providing shareholders with a more favorable tax position. The recognition of Bitcoin’s role by a prominent institution such as BlackRock could further boost the token’s acceptance and adoption within the traditional financial system.
New Rules For ETF Shares Exchange
Furthermore, the updated document outlines the rules for exchanging baskets of shares for cash, emphasizing that the exchange for Bitcoin is subject to regulatory approval. The SEC should begin final deliberations on the spot ETF proposals in early January 2024.
According to reports, many price predictions for Bitcoin revolve around the approval of this ETF. Despite numerous delays and rejections, the current sentiment strongly favors approval. Meanwhile, popular BTC trader and investor Bob Loukas stated that the extensive engagement and discussions by the regulatory body on the Bitcoin ETF signal a 99.9% approval certainty.
Traders Predict $50,000 Price Threshold Before 2024
As the year comes to a close, Bitcoin’s price action will depend on a slew of macroeconomic data releases, potentially adding volatility to its movement during the holiday season.
Meanwhile, the latest video update by Crypto Ed, the team behind the trading group CryptoTA, indicates a BTC price drop below $40,000. Then, a subsequent surge could push BTC to $50,000 by the end of the year.
However, he cautioned about having expectations and suggested a wait by the end of the week.
Will 2024 be BTC’s Golden Era?
There’s a lot of talk about regulatory hints pointing to the imminent approval of spot Bitcoin ETFs, which could open the floodgates for institutional investment. According to industry experts, these investment products will revolutionize Bitcoin’s accessibility and accelerate its adoption.
Furthermore, the most promising prospect on the horizon is the halving of Bitcoin scheduled to happen in April 2024. This planned reduction in mining rewards directly reduces Bitcoin’s supply, but rising demand could catapult its price higher.
A Possible Price Upswing
Historical patterns point to spectacular price upswings after previous halvings. Bitcoin rose from $650 in July 2016 to $20,000 within 18 months. Also, the 2020 halving sparked an even more spectacular rally, with BTC’s price rising from $8,800 in May 2020 to nearly $70,000 by November 2021.
While there would be uncertainties ahead, this year’s resilient recovery has strategically positioned Bitcoin for these upcoming catalysts that could reshape its price trajectory.