The king cryptocurrency finally surpassed the $46,000 mark as its impressive rally continues to accelerate. We had written days ago that the rise in BTC price could continue, but sales in altcoins might deepen. As BTC moves its peak higher in the new week, altcoins saw more selling.
Why Is Bitcoin Rising?
The SEC is practically performing a ritual for the spot Bitcoin ETF. Days before the approval of the Bitcoin Futures ETF, the SEC had highlighted the high volatility and fraud risks of cryptocurrencies. Today, Gensler did the same. All files were uploaded to the SEC system by those applying for the spot Bitcoin ETF. All details, including annual transaction fees for ETFs, were recorded in the files. Now everything is ready, only one thing remains.
The SEC must issue its final decision on the ETF application made by Ark and 21Shares on Wednesday. More than 30 meetings in December alone, meetings with exchanges, and days of ongoing file updating races all point to one thing. The SEC has given a verbal approval but has not officially announced it. Bitcoin is pricing exactly this and has risen above $46,000.
If approval is given on Wednesday, we may see speculative declines targeting liquidation on the futures side after the rapid rise. However, the first volume data on Thursday will determine the medium-term direction of the price. Massive pending demand is already being reported, but the reality will be seen by everyone on Thursday (or Friday) after the listing. If the volume does not come as expected, excessive selling is possible.
