As the crypto community anticipates the potential approval of a spot Bitcoin ETF, Bitcoin’s price has begun to show significant volatility. This increase in volatility coincides with several large whale transactions consisting of hundreds of BTC, which could be indicative of a potential downturn.
The U.S. Securities and Exchange Commission (SEC) is expected to make an announcement regarding the approval of a spot Bitcoin ETF between January 8-10, 2024. If approved, this is likely to significantly boost Bitcoin’s price momentum in the following quarter.
Crypto analyst Dan McDermitt predicts that Bitcoin’s price will retest the $40,000 support level entering 2024 and may consolidate below the $44,000 resistance level for a period in the new year.
During major macroeconomic announcements, such as those from the Federal Reserve (Fed) on interest rates, Bitcoin is expected to trade closer to the $40,000 support range, particularly around January 6-10. The consolidation of Bitcoin’s price formation could signal a recovery for altcoins, which may rise in prominence in this scenario.
Recently, altcoins like Chainlink (LINK) and Litecoin (LTC) have shown signs of volatility, which could be early indicators of an altcoin rally. Investors and traders may adopt a more cautious approach until January 10, 2024, in anticipation of the SEC’s decision.
The approval of the spot Bitcoin ETF in January 2024, combined with the influx of institutional money and the anticipated Bitcoin block reward halving in the second half of 2024, presents a positive outlook for traders and investors. This suggests that Bitcoin could experience a prolonged bullish momentum in the context of these historically significant crypto market events. Major financial institutions like Standard Chartered and investment firm Ark Invest’s CEO Cathie Wood have high expectations for Bitcoin’s price, predicting it could reach $100,000 by the end of 2024 and $1 million by 2030, respectively.