As the first spot Bitcoin ETF in the USA nears approval, market participants are eagerly anticipating Bitcoin’s next price move. Earlier in the week, Bitcoin’s price surged above $45,000 and has maintained its position above this level.
On-chain metrics suggest Bitcoin is currently facing some buying pressure at these levels. Crypto analyst Ali Martinez highlighted the Bitcoin MVRV Pricing Bands, which indicate potential price targets for Bitcoin at $52,680 and $70,250.
A recent report from the crypto firm Matrixport reveals that the largest cryptocurrency‘s funding rate has hit a new peak at 66%, suggesting that this momentum could push Bitcoin beyond the anticipated January 2024 target of $50,000—a milestone now within reasonable reach.
On the other hand, crypto analyst Michael van de Poppe pointed out a historical trend where Bitcoin dominance tends to peak during periods leading up to the block reward halving, which occurs in four-year cycles. He suggests that the current fluctuation in Bitcoin dominance, largely influenced by the spot ETF approval expectations, could indicate an impending upward surge, followed by a correction that may increase Bitcoin’s market dominance, warning altcoin investors.
Analysts Anders Helseth and Vetle Lunde from K33 Research, in a recent investor note, cautioned that immediate significant inflows might not result from the approval of spot Bitcoin ETFs, potentially leading to a ‘buy the rumor, sell the news’ scenario.
However, the analysts emphasized the importance of such investment products, suggesting they point to a longer-term structural shift in buyer interest. K33 Research estimates a 5% chance that the SEC will reject investment products that directly invest in Bitcoin, a 75% probability of a ‘buy the rumor, sell the news’ scenario, and a 20% chance of a potential price increase due to ETF inflows.