Bitcoin has reached over $38,000, a level not seen in 17 months, registering a notable 5% gain within the past week. The surge in Bitcoin’s value is linked to growing expectations that the U.S. Securities and Exchange Commission (SEC) might soon approve a spot Bitcoin exchange-traded fund (ETF), a development eagerly awaited by the cryptocurrency community.
Despite recent delays in the SEC’s decisions on ETF applications from Hashdex and Grayscale, Bitcoin has demonstrated resilience, maintaining an upward trajectory in its price. The delays have not dampened market optimism, as investors eagerly anticipate potential approvals.
Investor attention is now focused on Franklin Templeton’s Bitcoin ETF application, with a deadline approaching today. Additionally, other spot ETF filings are scheduled for January 2024 deadlines, with Bloomberg Intelligence analysts projecting potential approvals in the first week of January 2024. Approval of these spot BTC ETFs is expected to simplify the process for institutional and retail traders to include Bitcoin in their portfolios, potentially driving further price increases due to increased demand.
The optimistic outlook is further supported by data from BTCDirect, revealing that a significant portion of Bitcoin’s supply remains unmoved. Approximately 69% of the total Bitcoin supply has not experienced any movement over the past year, contributing to decreased circulation volume and selling pressure. This static supply is considered a key factor supporting Bitcoin’s recent price surge.