Bitcoin Nears $40K: First Surge Past $38K Since May 2022

Jonathan Stoker Nov 24, 2023, 18:15pm 119 views

Bitcoin Nears $40K: First Surge Past $38K Since May 2022

Bitcoin Ascends to New Heights Amid Quiet Traditional Market Trading

On Friday, BitcoinBitcoin$42,260 -0.64% (BTC), the pre-eminent cryptocurrency by market valuation, reached heights unseen since May 2022. This surge took place against the backdrop of quiet trading in conventional markets, following the U.S. Thanksgiving holiday. Although BTC touched $38,000 earlier in the day, it later stabilized around $37,800. It managed to secure its position above the $38,000 line for several hours, giving indications of a possible further climb.

Uptick Tied to Anticipated Bitcoin ETF Approval

The surge in Bitcoin's value is linked to investor expectations of a potential approval from the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin ETF. As claimed by Laurent Kssis in an interview with CoinDesk, the forthcoming Bitcoin ETF could introduce new levels of volatility to the market. This is due to its potential January 11 enactment date for the 14b1 consent, separate from the s1 approval.

Bitcoin ETF: A Gateway for Institutional Investors

Kssis further elucidated the appeal of a Bitcoin ETF. Its simple trading procedures and cost-effectiveness make it an attractive prospect for institutional investors, who previously have been unable to participate in the crypto market due to compliance restrictions. The introduction of this ETF is likely to drive new trading volumes from these institutional investors.

Predictions for Bitcoin's Performance

Regarding the potential impact on Bitcoin's value, Kssis speculates that this weekend could see Bitcoin rally to $40,000. The choppy waters of the ETF approval periods could stir up increased volatility for Bitcoin, simultaneously creating both risks and opportunities for investors. Those engaged in arbitrage could have a field day if BTC indeed breaks the 40K mark.

Ethereum Follows Suit

Following in Bitcoin's footsteps, Ether (ETH), the cryptocurrency with the second-highest market value, also saw a gain of over 3% on Friday.

Related: Bitcoin's 3-Week Consolidation Under $38K Bears Bullish Implications

Edited by Jonathan Stoker

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