Bitcoin Expected to Rally Ahead of Rumored ETF Approval in January
Bitcoin (BTC/USD) is predicted to experience a rally as investors and traders anticipate the approval of a spot Bitcoin exchange-traded fund (ETF) in January. The growing volumes in the market indicate a surge in interest and confidence in Bitcoin.
Cory Klippsten, CEO of Swan Bitcoin, believes that the recent surge in Bitcoin prices is a sign of an upcoming rally. He suggests that the approval of a Bitcoin ETF by the US Securities and Exchange Commission (SEC) will eliminate the noise surrounding other cryptocurrency tokens and bring attention to the true potential of Bitcoin.
Klippsten stated in an interview with Bloomberg, “You’re replacing that [noise] with the largest, most-trusted financial institutions on the globe, who are going to be talking about the real signal in this space, which is Bitcoin.”
While it is difficult to predict the extent of the rally and whether it has already been priced in, Klippsten acknowledges that some of the upside is already reflected in the current market prices. He also expects that there may be some significant drawdowns during the rally, considering macroeconomic factors and the potential impact of the ETF approval.
Over the past two months, Bitcoin trading volumes have seen a significant increase of 100%. This surge in trading activity has coincided with a 41% rise in Bitcoin prices, reaching a year-to-date high of $38,742 and pushing its market capitalization above $757 billion.
Klippsten also noted that older generations, particularly baby boomers and Gen X, are investing more money in Bitcoin compared to Gen Z. This is likely due to the higher disposable income of these age groups.
He emphasized that Bitcoin serves as a hedge against monetary inflation and the printing of more money. As a result, the narrative around Bitcoin is shifting towards it being a safe-haven asset and a risk-off trade.
As the anticipation for the Bitcoin ETF approval builds, it is expected that the rally will continue, bringing further attention and investment to the cryptocurrency market.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial or investment advice. Investing in cryptocurrencies, like Bitcoin, carries inherent risks and may result in the loss of your investment. It is always advisable to do thorough research and seek professional advice before making any investment decisions.
