Bitcoin Blasts Higher: FOMO and Spot Bitcoin ETF Approval

Bitcoin’s price surges above $47,000 due to explosive FOMO for ETF. Where will it go next?

📅 Last updated: January 8, 2024 03:59 EST
⏰ Reading time: 3 min
📷 [Image] Bitcoin Blasts Higher (Source: Adobe)

The Bitcoin (BTC) price just vaulted above $47,000 for the first time since April 2022 as FOMO comes in ahead of the expected approval of spot Bitcoin ETFs by the US SEC later in the week. Bitcoin is up 7% on the day, taking its gains since the start of the year to 11%. That means the Bitcoin (BTC) price is now up a staggering 87% from its September 2023 lows at $25,000. This surge in price has left many investors excited and curious about what’s to come in the Bitcoin market. Let’s dive into the details and explore the implications of the expected spot Bitcoin ETF approval.

Spot Bitcoin ETF Approval Growing FOMO

Various US spot Bitcoin ETF applicants, including BlackRock, Grayscale, and Fidelity, updated their filings once again on Monday. Additionally, these applicants revealed the fees they plan to charge ETF investors. These headlines have clearly helped pump fear of missing out (FOMO) of potential Bitcoin price upside amongst market participants. Most crypto market analysts, investors, and observers view the long-awaited approval of spot Bitcoin ETFs in the US as likely to be a historic moment for the Bitcoin market.

The approval of spot Bitcoin ETFs will be interpreted as a regulatory thumbs up from regulators in the world’s largest economy. This will boost BTC’s legitimacy, easing skepticism that has long kept many investors away from the crypto market. Spot Bitcoin ETFs will also be easy for traditional investors to invest in. Rather than needing to open an account at a crypto exchange and understand web3 nuances such as how to use wallets, investors will be able to buy the ETF directly with their existing brokers. All said, spot Bitcoin ETFs in the US are expected to attract significant demand, bringing a wave of fresh capital into the crypto space.

• 🚀 Bitcoin Soars Above $47,000 Amidst ETF Buzz: What’s Next for the Cryptocurrency? 🌙
• HyperVerse Crypto Promoter Arrested for Operating a $58 Million Crypto Ponzi Scheme
• Uniswap’s Biggest Crypto Gainers: PNDC, BSSB, and BIGTIME

💡 Q&A: What are the benefits of spot Bitcoin ETFs for investors?
Spot Bitcoin ETFs provide an easy and regulated way for traditional investors to gain exposure to Bitcoin without the complexities of directly purchasing and holding the cryptocurrency. This accessibility is expected to drive significant demand and bring new capital into the crypto market, supporting the Bitcoin price in the years ahead.

💡 Q&A: How will the approval of spot Bitcoin ETFs impact the Bitcoin market?
The approval of spot Bitcoin ETFs is viewed as a major milestone for the Bitcoin market as it signals increased legitimacy and regulatory acceptance. This positive development is expected to attract more investors, especially from the traditional finance sector, and contribute to further upside potential for the Bitcoin price.

Renowned crypto investor Mike Alfred recently tweeted that Standard Chartered projects $50-100 billion of spot Bitcoin ETF inflows this year, with the BTC price potentially reaching $200,000 by the end of 2025. These predictions have no doubt fueled the aggressive buying of BTC in recent days as traders aim to front-run the anticipated wave of new demand.

Where Next for the Bitcoin (BTC) Price?

Bitcoin’s latest leg higher has seen the price pop to the north of a short-term upward trend channel. This opens the door for an acceleration of near-term gains towards the 2022 highs around $48,500. Assuming spot Bitcoin ETFs do get the green light, the likelihood of testing the 2022 high is strong. A surge towards the key psychological $50,000 level is also on the cards. However, profit-taking is likely to keep trading conditions highly choppy.

💡 Q&A: What factors might impact the Bitcoin (BTC) price in the days and weeks ahead?
Analysts have warned of a possible sell-the-fact reaction to spot ETF approvals, where investors sell to book profits following positive market catalysts. Thus, BTC may experience swings between $40,000-$50,000 in the short term. However, in the longer term, Bitcoin’s price risks are heavily tilted towards further upside. Factors such as potential interest rate cuts by the Fed, the upcoming Bitcoin issuance rate halving in 2024, and institutional adoption in the US are likely to support the price.

On a side note, in the unlikely event that the SEC decides to reject spot Bitcoin ETF applications this week, BTC could quickly flush back into the $30,000s. However, this outcome seems less probable given the positive sentiment surrounding the potential approval.

🌐 Relevant Links:

1. Bitcoin (BTC) Price Pumps Towards $45,000, Reporter Claims SEC to Approve Multiple BTC ETF Applications
2. BlackRock and Valkyrie Name Authorized Participants, Including JPMorgan for Bitcoin ETF
3. Spot Bitcoin ETF Approval Growing FOMO
4. Standard Chartered Projects $50-100 Billion of Spot Bitcoin ETF Inflows
5. Bitcoin (BTC) Halving 2024: Miners Predict Potential Outcomes of Reduced BTC Rewards

With the expected approval of spot Bitcoin ETFs and the increasing mainstream acceptance of cryptocurrencies, the future outlook for Bitcoin appears promising. As more traditional investors gain exposure to the market, the demand for Bitcoin is likely to grow. However, it’s important to stay informed and monitor market developments to make informed investment decisions.

📢 What are your thoughts on the potential approval of spot Bitcoin ETFs and the impact on the Bitcoin price? Share your views in the comments below and don’t forget to spread the excitement by sharing this article on social media!

Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered as financial or investment advice. Cryptocurrency investments are subject to market risks, and readers should do their own research and consult with a financial advisor before making any investment decisions.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!