The cryptocurrency community is bullish as the SEC’s approval of a spot Bitcoin ETF seems likely in 2024. Financial behemoths, including BlackRock through iShares, Fidelity, and Ark Invest, are in the race to launch the first ETFs.

In the latter half of 2023, the market witnessed multiple price surges in Bitcoin (BTC) following rumors about the imminent approval of a spot Bitcoin ETF, which were subsequently debunked. This pattern has bred anxiety among investors, with fears of a classic “buy the rumor, sell the news event.”

On the other hand, CrediBULL Crypto, a cryptocurrency commentator on X (formerly Twitter), predicted a different market response. He stated that both the anticipation and the actual approval would result in purchasing enthusiasm, labeling it a “buy the rumor, buy the news event.”

Supporting this bullish outlook, another user argued against the likelihood of a sell-off post-approval, pointing out that ETFs must purchase Bitcoin with cash and cannot repurpose existing Bitcoin holdings.

The intense competition to become the ETF with the most liquidity could lead to a scenario where these large players expedite buying, similar to retail investors, in a fear-of-missing-out (FOMO) situation.

Spot Bitcoin technical analysis indicators in anticipation of an ETF approval

Fueling the conversation, a chart shared by TechDev shows bullish technical analysis indicators.

Notably, Bitcoin’s 2-month On-Balance-Volume (OBV) reached new highs, suggesting a new all-time high (ATH) could manifest within two months for BTC. The analyst also expects a price peak six to ten months after the forecasted ATH.

The approval of a spot Bitcoin ETF is expected to have a notable impact on Bitcoin’s price or valuation. Such a financial product would enable a broader investor base to gain Bitcoin exposure through traditional securities accounts. Potentially, this would enhance the legitimacy and stability of cryptocurrency as an asset class.

However, the cryptocurrency market is known for its volatility and unpredictability. Investors should exercise caution due to the inherent risks associated with cryptocurrency investments and speculation.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.