- Bitcoin recently reached a 20-month high, surpassing $42,000, driven by optimism surrounding a potential approval of a spot bitcoin ETF by the U.S. securities regulator.
- Investors await SEC decisions and monitor a gap from Sunday with initial levels at approximately $39,600 and $39,000.
In a new surge of momentum fuelled by widespread optimism that the U.S. securities regulator may soon approve a spot bitcoin ETF, Bitcoin briefly surpassing $42,000 to reach a 20-month high.
There is a sense of optimism in the space regarding the potential approval of a bitcoin exchange-traded fund (ETF) by the U.S. securities regulator. Such approval would likely enable a new type of investor to enter the cryptocurrency market through the regulated stock exchange, leading to an influx of capital into the digital asset. In October, SEC Chair Gary Gensler alluded to the agency’s consideration of up to 10 bitcoin ETF filings.
Additionally, falling inflation in the US is making higher-risk assets such as Bitcoin more attractive.
This sounds like a certain bullish environment, right? Well… nothing is certain in crypto so some downside projections might be appropriate to consider too. So, with that in mind, the gap on Sunday still needs to be filled, starting with approximate prices at $39,600 and $39,000.