Bitcoin has surpassed the $46,000 mark, continuing its impressive ascent. We previously indicated that Bitcoin’s rise might persist, while altcoins could face deeper sell-offs. As Bitcoin reaches new heights, altcoins are experiencing increased selling pressure.
The SEC appears to be performing a ritual for the spot Bitcoin ETF, echoing actions taken just before the approval of the futures Bitcoin ETF. SEC Chair Gary Gensler has repeated concerns about volatility and fraud risks in crypto. All necessary documents for the spot Bitcoin ETF application have been filed with the SEC, with details of annual transaction fees included, awaiting a final step.
The SEC is expected to make a final decision on the ETF application by Ark and 21Shares on Wednesday. Over 30 meetings in December, continuous updates to filings, and discussions with exchanges all hint at an SEC verbal approval, though not officially announced, which Bitcoin is currently pricing in.
If the ETF is approved on Wednesday, we may see speculative drops targeting liquidations on the futures side after the rapid rise. However, volume data on Thursday will be crucial in determining Bitcoin’s medium-term direction. There’s substantial pending demand, but the reality will be evident post-listing on Thursday or Friday. Without the expected volume, significant sell-offs are a possibility.
