Will Bitcoin ETF Approval Be a ‘Sell-the-News’ Event? Analyst Breaks Down Why BTC Surged Past $44,000

Published: Dec 6, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

Market conditions have turned favorable for Bitcoin, which has once again surged past the $44,000 mark. It reached a high of $44,408 before settling back at $44,100. The price surge has been attributed to the upcoming approval of a Bitcoin spot ETF by the Securities and Exchange Commission (SEC), according to a recent analysis.

QCP Capital Points to Spot ETF as Key Driver

According to a recent report by QCP Capital, the recent surge in Bitcoin price is primarily due to the anticipation of a Bitcoin spot ETF approval. The SEC has set a deadline of January 5, 2024, for rebuttal comments, with a potential approval likely to follow in the week after.

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QCP Capital stated that Bitcoin saw a 15% month-to-date increase in the first week alone. The total year-to-date gain stands at an impressive 260%.

In a previous report, QCP Capital predicted that the first spot ETF would be approved on January 3, 2024, coinciding with the 15th anniversary of the Bitcoin Genesis block. However, the SEC has set a slightly later date for the deadline.

Key Takeaways:

  • Bitcoin price surged past $44,000 due to the anticipated approval of a Bitcoin spot ETF.
  • The SEC deadline for rebuttal comments on spot ETFs is January 5, 2024.
  • Potential ETF approval could trigger a “sell-the-news” event.
  • Asian buyers have been re-entering the market following the SEC announcement.
  • Multiple spot ETF applications are being considered by the SEC.
  • Structured products based on Bitcoin are expected to emerge.
  • Accumulator + HYPP structure offers potential for significant returns.
  • Bitcoin price reaching the maximum gamma point for the structure.

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The anticipated approval of the spot ETF is predicted to have a positive impact on the short-term trajectory of Bitcoin’s price. Nevertheless, there remains uncertainty among analysts regarding its potential to reach the previous all-time high of $69,000.

The sustained success of Bitcoin in the long run hinges on the influx of funds post-ETF approval and the broader acceptance of cryptocurrencies.

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.