Bitcoin ETF

Bitcoin

As the Bitcoin price has regained previously lost territory, following reports suggesting that the US Securities and Exchange Commission (SEC) would reject the long-awaited Bitcoin<a href="https://www.newsbtc.com/coinbase/coinbase-custody-head-departs-as-crypto-giant-prepares-for-bitcoin-etf-services/" target="_blank" rel="noopener "> spot exchange-traded funds</a> (ETFs), new developments have reignited hopes among investors.&nbsp; 
Although the approval of these index funds is not expected to occur on Friday, sources indicate that the upcoming week may bring positive news.&nbsp; 
<h2 id="etf-approval-to-drive-gradual-bitcoin-price-surge-to-500-000">ETF Approval To Drive Gradual Bitcoin Price Surge To $500,000</h2> 
FOX journalist Eleanor Terret <a href="https://x.com/EleanorTerrett/status/1743274328098021824?s=20" target="_blank" rel="noopener nofollow">reports </a>that amended 19b-4 filings and last-minute phone calls regarding comments on S-1s and possible launch dates are expected in the coming days.&nbsp; 
While<a href="https://www.newsbtc.com/bitcoin-news/bitcoin-etf-sec-may-notify-approved-issuers-to-launch-very-soon-heres-when/" target="_blank" rel="noopener "> approvals seem likely</a> in the next week, according to Terret, the timeline ultimately depends on the SEC’s ability to review the comments and amendments submitted efficiently.&nbsp; 
Terret describes the current situation as a meticulous process of “dotting the i’s and crossing the t’s,” emphasizing the attention to detail required for regulatory clearance.&nbsp; 
On the other hand, crypto analyst Adam Cochran offers valuable insights into the potential impact of Bitcoin ETFs, as all signs point to the imminent approval of these investment products. 
Cochran <a href="https://x.com/adamscochran/status/1743291279155327013?s=20" target="_blank" rel="noopener nofollow">suggests </a>that many may “overestimate” the short-term effects of ETF approval while underestimating its long-term implications. In the immediate aftermath, market flows may not witness a significant surge. However, Cochran believes that investment advisors will review their clients’ portfolios over the next year and recommend diversifying even a small percentage, such as 1%, into the ETF.&nbsp; 
Cochran emphasizes that the Bitcoin <a href="https://www.newsbtc.com/news/record-crypto-options-volume-expires-pre-bitcoin-etf-deadline-analyzing-btc-and-eth-reactions/" target="_blank" rel="noopener ">price performance</a>, with a remarkable 157% return in the latter half of 2023, will be a key factor driving investor interest.&nbsp; 
Cochran envisions a gradual upward trajectory for the Bitcoin price, characterized by persistent growth and occasional market volatility.&nbsp; 
Ultimately, Cochran’s long-term forecast indicates a potential Bitcoin price surge to $500,000 per coin, leaving sidelined investors regretfully waiting for a substantial <a href="https://www.newsbtc.com/bitcoin-news/analysts-sound-alarm-spot-bitcoin-etf-approval/" target="_blank" rel="noopener ">market correction</a>. Cochran further noted: 
<blockquote>
 Also, ETFs result in spot buys, not leverage, which improves system health. And are long-term holders, less likely to sell volatility. So it creates a slow grind up of underlying market health. Like the best DCA you could ask for.&nbsp;
</blockquote> 
<h2 id="bitcoin-etf-pricing-potential-not-fully-realized">Bitcoin ETF Pricing Potential Not Fully Realized</h2> 
Crypto analyst Ali Martinez suggests that the pricing potential of a Bitcoin ETF may not have been fully realized, providing insight into the current state of the Bitcoin market. 
Martinez <a href="https://x.com/ali_charts/status/1743275407225278509?s=20" target="_blank" rel="noopener nofollow">points </a>to a decline in the estimated leverage ratio across all exchanges, reaching a two-year low. This indicates that Bitcoin traders are adopting a more cautious approach, reducing their use of borrowed funds as they await regulatory clarity on the ETF.&nbsp; 
Furthermore, Martinez <a href="https://x.com/ali_charts/status/1743011866803151250?s=20" target="_blank" rel="noopener nofollow">emphasizes </a>the significance of Bitcoin’s price above $41,800. According to Martinez, Bitcoin’s ability to maintain its position above $41,800 is crucial for establishing a bullish outlook.&nbsp; 
This level is reinforced by approximately 2.41 million addresses holding over 1 million BTC, creating a substantial support zone.&nbsp; 
<img loading="lazy" decoding="async" class="size-large wp-image-568330" src="https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=860&amp;resize=860%2C314" alt="Bitcoin price " width="860" height="314" srcset="https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=2344 2344w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=860&amp;resize=860%2C314 860w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=2048 2048w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/01/GDBq0fdWIAAMcmL.jpeg?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
The significant number of addresses with substantial Bitcoin holdings suggests a strong interest in maintaining the cryptocurrency’s value and provides a foundation for market stability. Martinez notes that the resistance levels ahead for Bitcoin appear relatively minor. This implies that fewer significant barriers are impeding&nbsp;potential price increases.&nbsp; 
With reduced resistance, the market conditions become more favorable for stable or rising prices, further supporting the bullish sentiment. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/7r32wkhj/" alt="Bitcoin price " width="1814" height="858"> 
Featured image from Shutterstock, chart from TradingView.com&nbsp;

Bitcoin Price Forecast: Analysts Caution Against Missing Out As BTC May Surge To $500k With ETF Launch

Table of Contents

NewsBTC

Other articles published on Jan 6, 2024

Brazil Emerges as the Epicenter of the Next Tech Megacycle

Celsius Price in Extended Downtrend: Can Bulls Make a Comeback?

Ethereum Faces Resistance at $2,400, TRON to Breach Past $0.11, Meme Moguls Enters Stage 4 of Pre...

Crypto Prices Today: Bitcoin Price Nears $44K, Lido DAO (LDO) Up 14%, While Pepe Coin Slips

Analysts Anticipate a Period of Consolidation for Cardano and Exponential Growth for InQubeta

Mango Markets Steps Up Legal Representation Amidst U.S. Regulatory Challenge

Join our free newsletter for daily crypto updates!