While fluctuations in Bitcoin price continue, a recent peak of $38,999 was observed on the Binance exchange. This increasing demand is attributed to the belief that the spot Bitcoin ETF will be approved, and this optimism could continue as we approach January 10th.
According to CryptoQuant analysts, the potential approval of a spot Bitcoin ETF could lead to a $1 trillion increase in Bitcoin’s market value. Galaxy Digital expects a price increase of 74% in the first year following the launch of the spot BTC ETF, which would indicate a new peak of approximately $70,000 based on current prices.
The SEC’s decision on approval or rejection is expected to be made between January 5th and 10th. The idea that ETF approval will increase institutional liquidity injected into the market is not unfounded.
According to a report published by CoinShares on Monday, institutional investor inflows are increasing. Investors who invest through crypto trusts and ETPs recorded inflows of $1.5 billion throughout last year. Last week alone, institutional inflows for Bitcoin amounted to $311 million, indicating strong demand that encompasses not only individual investors but everyone.
Looking at the monthly BTC chart, a clear similarity can be seen with the rapid rise at the end of 2020. The king of cryptocurrencies is now aiming to reverse its losses since April 2022 and reach a target of $47,000. We are witnessing a recovery process at a pace similar to the rapid decline experienced in the middle of last year. If the levels around $44,800 can hold as support, the path to the desired six-figure Bitcoin price may also open up.
