Bitcoin Soars 5%: ETF Approval has 99.9% chance?

BlackRock's latest filing for its proposed Bitcoin ETF coincides with BTC maintaining support just above $40,000.

On Dec. 19, Bitcoin surged past $43,000, driven by news surrounding the potential launch of the U.S.'s inaugural spot BTC exchange-traded fund (ETF).

Bitcoin ETF anticipation remains high.

TradingView data indicated that BTC experienced a rebound, reaching a peak of $43,456 following the daily closing. Despite a shaky start to the week, BTC/USD rapidly gained momentum, with the Dec. 18 closing price marking a 5% rise from the day's lowest point.

Subsequently, it was reported that BlackRock, one of the contenders for the first U.S. spot Bitcoin ETF, had revised its product redemption policy to incorporate BTC as an option.

“An in-kind redemption of some or all of a Shareholder’s Shares in exchange for the underlying bitcoin represented by the Shares redeemed generally will not be a taxable event to the Shareholder,” the latest iteration of BlackRock’s S1 filing with the U.S. Securities and Exchange Commission (SEC) states.

The filing also introduces regulations concerning the exchange of share baskets for cash instead of BTC, with the latter awaiting regulatory nod.

The SEC is poised to finalize decisions on the spot ETF in January 2024, making the upcoming month a crucial period for Bitcoin enthusiasts.

The approval of the ETF could significantly influence BTC's future trajectory, a sentiment gaining traction after persistent delays and denials.

Trader and investor Bob Loukas reacted to the latest developments on X:

“The level of SEC engagement and back/forth/changes on the bitcoin ETF tells us this is a 99.9% done deal,”.

This week, the SEC postponed its verdict on multiple Ether ETFs to May.

Bitcoin trader: $50,000 possible by the close of 2023

Before then, Bitcoin faces both the yearly candle close and various macroeconomic data releases, which could add to holiday season volatility. The market remains divided on BTC's immediate trajectory, with a dip below $40,000 still feasible.

In a Dec. 18 update, Crypto Ed from CryptoTA, predicted a potential dip followed by a surge, speculating BTC/USD could touch $50,000 by the close of 2023.

“Let’s see later in the week how this develops,” he concluded, giving a low target of $38,000.

Renowned trader Matthew Hyland echoes this positive sentiment, noting a bullish divergence between Bitcoin’s RSI and its price on daily charts.

As of the latest data, the daily RSI stood at 60.45, having stabilized from its peak when Bitcoin touched over $44,000, its highest in 19 months.

Meet Rahul Nambiampurath from Kerala, India, a skilled freelance writer specializing in cryptocurrency. Rahul, who studied finance at Sikkim Manipal University, is an expert in areas such as cryptocurrencies, blockchain technology, NFTs, and Web3, the new era of the internet. Rahul started exploring cryptocurrencies in 2014 and gained over fi ..