QCP Capital explains that Bitcoin’s price surge is largely due to developments surrounding the highly anticipated spot ETF.
The cryptocurrency market is witnessing another dramatic surge, with the price of Bitcoin surging by as much as 15% since early December. This rise contributes to a significant year-to-date gain of 158% for the leading token.
The catalyst for this latest surge was the SEC’s announcement on December 1 that the final deadline for rebuttals on spot ETFs would be January 5. This timeline sets up the possibility of approval, which market participants have been eagerly awaiting, next week.
QCP Capital speculated in a previous update that the SEC may approve the first spot ETF on January 3, coinciding with the 15th anniversary of Bitcoin’s creation block.
As Bitcoin approaches $45,000, it raises questions about how much this news is already reflected in current prices. According to QCP Capital, its future trajectory, including the possibility of revisiting its all-time high of $69,000, will largely depend on the actual market impact following the ETF’s launch.
The company warns of the possibility of a classic “sell the news” scenario if the ETF does not bring in substantial new flows.