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The royal cryptocurrency suffered significant losses throughout 2022, with new bankruptcies emerging every week, leading to nightmarish days. Although 2023 was relatively better, even the calmest weeks brought major developments, resulting in more sleepless nights. However, in 2024, investors are hopeful, eagerly anticipating days and nights filled with joy, unable to sleep due to excitement.
Cryptocurrencies 40 Days Later
Despite numerous macro developments, Bitcoin‘s price is on the rise. The U.S. data looks quite positive, but in case of a downturn, the recent contagious disease outbreak in China could be used as an excuse. Could the world dare to enter a global pandemic process once again, similar to the COVID era? It’s hard to tell, but every possibility must be considered.
Now that we’ve had our dose of fear, we can focus on the fundamental motivation in the market. Following numerous applications for spot Bitcoin ETF changes in mid-October, the Securities and Exchange Commission (SEC) delayed decisions for many applications, including those from BlackRock, Fidelity, ARK Invest, and 21Shares.
However, the final deadlines are approaching in about 40 days, on January 10. Moreover, as this date draws closer, the meetings between potential issuers and the SEC are becoming more frequent. Updates and various details suggest that we could see ETF approval by January 9 or 10, although it’s a low probability.
Crypto Predictions for January 2024
“Buy the rumor, sell the news” is a common phenomenon with cryptocurrencies, and a similar process is expected with the approval of the spot Bitcoin ETF. At least a few analysts believe so. The issue is that ETF approval is actually a long-term price catalyst for cryptocurrencies, as it constantly pumps institutional liquidity into them.
While we’re currently happy with the annual net inflow of 1-2 billion dollars as reported by CoinShares, the expected inflow of approximately 50 billion dollars after ETF approval could have much greater consequences. The reason for the excitement and anticipation among investors is precisely this. The widespread belief that nothing will be the same after the ETF approval could increase volatility with each passing day.
- 2024 brings hope to crypto investors.
- ETF approvals could shift market dynamics.
- Institutional interest may spike crypto volatility.
