The leading cryptocurrency, Bitcoin, is currently trading above $44,000, signaling a promising recovery for altcoins. Notable altcoins such as MINA, SOL, and INJ Coin are reaching new heights, with Solana surpassing the $80 mark. Despite the surge in altcoin values, Ethereum‘s price has not yet recovered to the anticipated levels. This raises the question of what has driven the recent market upswing.
Bitcoin’s price has surged to over $44,200, reaching $44,283, which has been a cause for excitement as it approaches the 2023 peak of $44,700 on Binance. This uptick has generated expectations among investors for a breakthrough similar to previous resistance levels, especially after recovering from the $40,000 mark.
The rise in Bitcoin’s value is largely attributed to the anticipated approval of a spot Bitcoin ETF in the early months of the coming year. The SEC has engaged in an unusual number of meetings, totaling nine in December alone, with entities such as Grayscale and BlackRock. This increased communication suggests a shift from the SEC’s previous outright rejections, hinting at potential approval.
Concerns surrounding central exchanges have diminished following the Binance agreement, as volumes of Bitcoin inflows and outflows continue to rise in the months after the deal. This trend potentially reflects growing confidence in the likelihood of an ETF approval.
Throughout the year, Bitcoin’s price has increased by 166%, and altcoins have seen gains exceeding 20-fold. As the year ends, the macroeconomic situation appears to be stabilizing, with interest rate cuts on the horizon and the market remaining optimistic. According to Markus Levin, co-founder of XYO Network, analysts are surprised by the Federal Reserve’s indications of early interest rate cuts next year, which could be a significant catalyst for asset volatility. Meanwhile, MicroStrategy CEO Michael Saylor predicts that the approval of Bitcoin ETFs will be the most significant financial event since the launch of the S&P 500. Galaxy Digital anticipates a 74% price increase for Bitcoin following the launch of a spot BTC ETF, with the SEC’s decision expected between January 5-10, leaving roughly 20 days for the outcome.