- SEC approval could come at a good time for Bitcoin
- Markets anticipating significant movement on BTC’s price charts
If you are an avid follower of the crypto market, there is a high chance that you have heard about the Bitcoin [BTC] spot ETF over the last few days.
Do you know the interesting part though? You are not alone as AMBCrypto noticed that many market participants have been on the edge of their seats waiting for the resolution of the long-standing matter. In fact, such has been the scale of conjecture in the market that someone actually hacked into the SEC’s official Twitter account to push out fake news of approval. This was later refuted by SEC Chair Gary Gensler.
Crypto-analysis tool Santiment also shared a similar view via its post on X. According to Santiment, players are enthusiastic that the U.S. SEC would say a “yes” to the numerous applications.
As a result, discussion around Bitcoin ETFs surged to their highest point since the 17th of October, 2023.
📈 The potential #BitcoinETF approval is seemingly on all of the #crypto community’s mind as $BTC has surged above $46.1K for the first time since April, 2022. Wide expectations presume several #ETF applications will be approved simultaneously, which would immediately
(Cont) 👇 pic.twitter.com/60fc77UUp8
— Santiment (@santimentfeed) January 8, 2024
HODLers land in more gains, are more on the way?
Apart from the chitchat about the development on many platforms, participants are also watching BTC’s price closely. At press time, Bitcoin was changing changed hands at $46,540 on the charts.
The coin’s price briefly crossed $47,000 a while back after many posts appeared that several spot ETFs would get the SEC’s consent.
Despite the price increase, however, there is talk in some quarters that Bitcoin is not yet priced in. Some comments on social media also noted the announcement, if eventually made, would move mountains for Bitcoin’s price.
The movement has also impacted the Realized Cap. The Realized Cap measures the cost of acquiring Bitcoin from the last time they were transacted on-chain.
For instance, according to Glassnode, Bitcoin’s Realized Cap rose to $436 billion and was 7% away from its All-Time High ATH.
Source: Glassnode
The Realized Cap move, alongside BTC’s price, aided the profits of Bitcoin holders. In fact, based on data from IntoTheBlock, over 90% of Bitcoin addresses were in profit at press time.
Should Bitcoin reach $50,000 as some analysts predict post-ETF, this percentage might move up to 95%.
With Bitcoin’s swift move past $46k, over 90% of all BTC addresses are now in profit. pic.twitter.com/GGchdT0yOl
— IntoTheBlock (@intotheblock) January 9, 2024
Watch out for the spot volume and OI
AMBCrypto went ahead to assess traders’ sentiment regarding the spot ETF potential approval. At press time, the Funding Rate was 0.01%, according to on-chain data from Santiment.
The Funding Rate is the cost of holding an open position in the derivatives market.
Since the metric was positive, it means that the perp price was trading at a premium compared to the spot price.
Furthermore, the positive Funding Rate while BTC’s price stalled indicated that longs have been aggressive. However, they’ve not yet been rewarded for their positions.
Source: Santiment
The reasonable inference here is that Bitcoin had become bearish and could key into the resistance. But the tides might change for the price depending on the Open Interest (OI) and spot volume.
Read Bitcoin’s [BTC] Price Prediction 2024-2025
If the OI and spot volume increase and there is the SEC’s approval, then Bitcoin will exit its bearish position.
In this instance, the potential price appreciation to $50,000 could become a reality.