Bitcoin breached the $45,000 mark for the first time since April 2022.
Ryan Lee, Bitget Research Chief Analyst: “The price of Bitcoin (BTC) recently surpassed $45,000, setting a new high since April 2022. This price increase is mainly due to market expectations that the first spot Bitcoin ETF might get approved. BTC prices quickly rose from $42,000 to over $45,000 on January 2, rising more than 7% in 24 hours.
Market commentators and analysts have mixed views on the impact of ETF approval on Bitcoin’s short-term price. Some analysts from cryptocurrency trading platforms believe that even if the ETF is approved, Bitcoin may not immediately experience a significant rally. There are also some optimistic views, such as influential trader Scott Melker predicting that Bitcoin could surge to $54,000 in the next few days once the SEC approves the ETF. Matrixport predicts that BTC will rise to $50,000 within a month after passing the BTC spot ETF in January.
Overall, the current sentiment in the cryptocurrency market is bullish, especially as the Bitcoin halving event approaches and traditional institutions’ investment interest in BTC increases. However, it should be noted that the cryptocurrency market has high volatility. Although there are opportunities to achieve wealth effects, there are also greater market risks. The market is currently highly anticipating the decision on the spot Bitcoin ETF and its possible impact on the market. It is recommended that users continue to pay attention to the impact of the news, prepare trading strategies in advance, and set take-profit and stop-loss points.”
Dhruvil Shah, SVP- Technology, Liminal Custody Solutions: Digital assets are considered the future of money for many reasons. If we look at the last 5 years, digital assets like Bitcoin and Ethereum have transformed the financial landscape around the globe by empowering users with decentralization, transparency, low transaction costs, and accessible financial services. One of the best use cases of digital assets is faster and cheaper remittance, which enables the movement of funds at lightning speed and a fractional cost.
Blockchain is the underlying technology for digital assets, which provides a public and transparent ledger of all transactions, which reduces fraudulent activities and prevents the illicit use of digital assets. Also, digital assets offer an excellent platform for boosting financial inclusion and offering the benefits of modern financial services to the unbanked population around the globe.
In 2023, Bitcoin emerged as one of the best-performing asset classes, outshining the traditional markets. The much-awaited Bitcoin ETF approval by the SEC will accelerate the mass adoption of digital assets and encourage global institutions to begin their digital asset journey.
Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange: Bitcoin started 2024 on a strong note as it surpassed the $45,000 mark for the first time since April 2022. The overall crypto market cap jumped to the $1.75 trillion mark, with Bitcoin and Ethereum leading the effort. The growing optimism around the ETF approval by the SEC is driving the current market rally, as there are some reports from Reuters that approval may come this week. The latest surge is a broader crypto market rally, with most of the altcoins witnessing a healthy surge in their prices.
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