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On November 15, Bitcoin Surges $38,000 achieving a milestone for the first time in nearly 17 months. This surge in Bitcoin’s value is driven by the optimistic expectations of market participants. Who are eagerly awaiting approval for a spot Bitcoin ETF from the U.S. Securities and Exchange Commission (SEC), a key regulatory body. Despite delays in approving spot ETF applications from Hashdex and Grayscale, the foremost cryptocurrency, boasting the largest market capitalization, continued its upward trajectory unabated.
Bitcoin Surges $38,000 Amid Positive Regulatory Outlook and Supply Dynamics
The value of Bitcoin climbed to $38,016, breaking the $38,000 threshold for the first time in approximately 18 months. That amid the ongoing upward trend. Two significant drivers of this surge include the optimistic outlook for the potential approval of a BTC spot ETF by the U.S. Securities and Exchange Commission (SEC) and the expectation of heightened institutional demand for the cryptocurrency.
The SEC granted an extension to the deadline for the applications of Hashdex and Grayscale. Allowing them to convert their Bitcoin futures ETF to spot. Initially scheduled for November 17, the deadline was prolonged, as indicated by recent filings. Despite this postponement, the SEC’s decision had negligible effects on Bitcoin’s price, and the cryptocurrency continued its upward trajectory seamlessly.
Another Bitcoin ETF application, submitted by Franklin Templeton, also faces the November 17 deadline. Concurrently, other filings have deadlines in January 2024. Analysts at Bloomberg anticipate the SEC’s approval of spot BTC ETFs in the first week of the upcoming year, making it more accessible for both institutional and retail traders to engage with Bitcoin in 2024.
Also Read: Halving Event 2024: Bitcoin Gears Up for Significant Changes
A noteworthy factor contributing to Bitcoin’s recent gains is the inactive supply of the cryptocurrency. According to data from BTCDirect, 69% of the BTC supply has remained untouched for a year. This reduced circulation of BTC alleviates selling pressure on the asset, reinforcing an optimistic outlook for Bitcoin.
Bitcoin Rally: Breaking $38,000 and Setting Sights on $43,000
Bitcoin experienced a notable rally, surpassing the pivotal $38,000 threshold, a level last observed in May 2022. Interestingly, during 2021, BTC effectively converted the $36,127 resistance into a supportive level, propelling its ascent towards the subsequent resistance at $43,200. With the current Bitcoin price exceeding $38,000, there is an expectation for a successful retest of this psychological barrier before the cryptocurrency aims for the $43,000 target in the week ahead.
