Bitcoin surges above $44,000 on optimism over ETFs
Bitcoin started the new year by surging past the $45,000 mark, a milestone not seen in 21 months. A positive outlook on the potential approval of Bitcoin spot ETFs and the upcoming April halving drove this upward momentum. However, a setback occurred on Wednesday when Matrixport's report suggested that the SEC might reject Bitcoin spot ETF proposals, triggering a market dip across various cryptocurrencies.
This news induced panic among some investors, leading to sell-offs and causing Bitcoin to drop below $41,500.
Nevertheless, Bitcoin quickly rebounded on Friday, surpassing the $44,100 level. Reports of the SEC's final comments to issuers hinted at potential approval for Bitcoin spot ETFs, restoring confidence among market participants. This recovery followed Wednesday's crash and renewed optimism in the market.
Bitcoin faces resistance at the $44,400 and $45,500 levels, and a failure to surpass these levels could initiate a fresh decline with support at the $43,500 level. Despite being 34% down from its all-time high, Bitcoin has seen a 163% increase year-to-date, starting at the $16,800 level on January 5th, 2023.
In parallel, Ethereum has mirrored Bitcoin's fluctuations in gains and losses. Currently, down by 52% from its all-time high of $4,800, Ethereum has risen by 81% year-to-date, starting at the $1,200 level.
Most altcoins are experiencing gains, reflecting a bullish sentiment in the market.
A noteworthy development is that Bitcoin celebrated its 15th anniversary on January 3rd. Its extraordinary journey positions it as a revolutionary force in the financial landscape. The transformation from initial scepticism to growing adoption by retail and institutional investors is significant.
