The price of Bitcoin has broken through $45,000 for the first time in nearly two years as the market prepares for a widely expected approval of a spot Bitcoin exchange-traded fund (ETF).
Bitcoin climbed rapidly from a price of $42,000 on Jan. 1, surging more than 6% in the last 24 hours and 170% over the last year, per CoinMarketCap data.
Bitcoin is trading higher than any price reached in 2023 and marks a significant new yearly high for the asset just two days into 2024.
Bitcoin’s price performance comes as the market gears up for the SEC to approve one or several of the 14 outstanding applications for a spot Bitcoin ETF product, currently pending a decision with the regulator.
The last time Bitcoin traded above $45,000 was nearly 20 months ago on April 5, 2022, when Bitcoin closed the day at $45,241 before descending into an enduring bear market that saw Bitcoin fall as low as $15,600, per TradingView data.
Market commentators remain divided over the potential impact an ETF approval will have on the price of Bitcoin in the short term.
Analysts from crypto options trading platform Greeks.live claim that Bitcoin won’t experience a significant rally on the day of an approval, due to dwindling implied volatility on Bitcoin options.
Traders on X are of a different mind, with Scott Melkor telling his 925,000 followers that Bitcoin is currently forming a “bull penant” following a month of consolidation at prices around the $40,000 mark.
Melkor predicts that Bitcoin could shoot as high as $54,000 in the days following the potential approval from the SEC.
Breaking out of the bull pennant after nearly a month of consolidation. The target based on the measured move from the length of the flag is roughly $54,000.
Targets rarely hit, anything can happen. But that's what the chart says. pic.twitter.com/txs5QFJAqI
— The Wolf Of All Streets (@scottmelker) January 2, 2024
Meanwhile, VanEck advisor Gabor Gurbacs predicts the early days of a spot Bitcoin ETF will be considered a “let down” by wider market standards, however ultimately believes the products will attract trillions of dollars worth of inflows over the next few years.