Bitcoin (BTC) price remained stable on Monday. Over the weekend, BTC price stayed above the $34,000 support. Investors are eagerly awaiting an eventful week ahead. The decision on interest rates in the United States will be closely watched by investors.
How Does Bitcoin Rise?
Crypto investors and market participants continue to anticipate potential approval of the first Bitcoin spot ETF in the United States by the SEC.
Companies applying for ETFs have been working tirelessly to optimize their proposals in order to obtain approval. While approval of the first Bitcoin spot ETFs is not guaranteed, reports suggest that the SEC may approve the ETFs to avoid new lawsuits.
The SEC recently faced a major setback in a case involving digital asset fund manager Grayscale. Grayscale filed a lawsuit against the SEC for refusing to approve the conversion of Bitcoin Trust (GBTC) to a BTC spot ETF, and more importantly, won the case.
JP Morgan stated that if the SEC does not approve the ETFs, the institution may face numerous lawsuits and headaches. Following false news claiming that the SEC approved an ETF proposal by BlackRock, which was later denied, Bitcoin experienced a significant increase in October.
BTC, which traded above the $30,000 level for a long time, created a major impact and lifted the rest of the market with it. The BTC price then moved above the $34,000 level and tested it as a support level. It has since dropped to $34,400 at the time of writing, after trading above $35,000 for a while.
Another event that is expected to affect the price of Bitcoin will be answered in April 2024. Investors believe that the Halving, which is expected to take place on this date and will halve the Bitcoin miner rewards, will contribute to the bull market. The creator of the Stock-to-Flow (S2F) model, PlanB, stated that the Halving is only six months away.
The Future of Bitcoin
Since the breakout in October, the Bitcoin price has tested the $35,000 resistance level several times. Another encouraging point for investors is that the downturns have been weaker than expected. Investors continue to believe that this is the first stage of a bull market.
A bullish breakout in the Bitcoin price and staying above the $35,000 level could push the price to $37,500 and then above $40,000. On the other hand, if the Bitcoin price continues to stay below $35,000, the bulls may lose strength and the upward trend could reverse.
