BTC Price Soars to $38,000 Despite SEC Delay in Approval of Spot Bitcoin ETF

Bitcoin could potentially surge to $44,000 before the spot Bitcoin ETF is approved, since analysts are now relying on no more future rate hikes.

Bitcoin, the largest cryptocurrency in the world, surprised investors on Wednesday by reversing its downward trend and flying all the way to $38,000. Bitcoin’s price hasn’t been this high since May 2022, nearly two years ago.

SEC Delays Approval of Bitcoin ETF

Despite the fact that the US SEC has put off a decision on whether or not to approve the spot Bitcoin ETF, this event has occurred. The adoption of ETFs would make Bitcoin trading easier for ordinary and institutional investors alike. This might cause a flood of new money into the asset category.

As of press time, the price of one bitcoin was $37,843, an increase of about 6% in 24 hours. To far, it has rebounded 129% from its low point in 2022. On the other hand, altcoins like Ether (now ranked second) also saw gains.

But then what’s generating this increase in the Bitcoin price? Cryptocurrency prices may receive a significant boost if the Federal Reserve ends its rate-hike cycles, as is widely expected by analysts. Zach Pandl, managing director of research at Grayscale Investments LLC, a provider of cryptocurrency investment funds, recently sent a message to clients.

If real interest rates peak and progress is made toward spot ETF approvals in the US market, “the recovery in crypto valuations can continue.”

The question of whether or not this year’s Bitcoin boom has already factored in the expected impacts of spot ETFs remains a mystery for investors. The question, according to a number of market observers, is not whether or if the approval has already been “priced in,” but rather how much money will flow into the ETFs.

Where is the BTC Price Moving Next?

After encountering selling pressure at $35,000 earlier this week, Bitcoin is showing healthy volatility. Analysts predict a BTC price climb to $43,000 and beyond in the next few weeks now that it has broken above key support levels at $36,000.

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Furthermore, on-chain data suggests that the Bitcoin network activity is demonstrating good strength. According to Santiment, one of the most important alpha crypto market indications for traders is the ratio of Bitcoin’s NVT (Network Value to Transaction). This metric assesses the health of the circulating unique $BTC amount relative to current market cap levels.