As the new year kicked off Bitcoin did not waste any time as it quickly began climbing during the first day of the year - continuing the bullish trajectory. Within a few days the leading digital currency of the world added over 65 billion dollars to its market cap, thus attaining a market cap of almost 900 billion dollars. The rise in price, caused by an onset of investors buying Bitcoin had it achieve a price level not seen since April of 2022. Let's get into the specifics of last week.
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Bitcoin started the week trading at around 42.698 dollars, before making a surge towards 46.000, hitting an intraday high of 45.821. The surge was most likely due to the ongoing optimism in regards to multiple spot Bitcoin ETF applications and the likelihood that one or more of them will be approved by the SEC. Even with the global influx of investors deciding to buy Bitcoin, the joy was somewhat short-lived as Bitcoin within a few hours fell towards 42.000 dollars on its “Genesis Block Day”. Despite the sudden fall in price, Bitcoin ended the week on a positive note as it began climbing steadily, closing the week up 3,65 % at a price of 44.260 dollars.
Eric Balchunas, a name familiar to most of you now as one of the leading Bitcoin spot ETF analysts, tweeted on January 5th that “it's basically done” when it comes to the SEC approving one or more spot Bitcoin ETFs. Earlier that day, Balchunas commented on rumours from “a well placed source” that BlackRock has two billion dollars lined up to be injected into their spot Bitcoin ETF. The rumours has it that the liquid funds come from existing Bitcoin hodlers, selling Bitcoin to buy into the ETF. If true, it looks to be the highest ever inflow for an ETF, sure to make headlines around the world. Already, Blackrock has a solid track record of launching ETFs and they dominate the top 10 list of ETF launches.
Heading into week two of 2024, all eyes will be on the imminent decision(s) made by the SEC. To mention Eric Balchunas once again, he updated his projection in terms of approval/non-approval to 95% on January 6th.
As with any investment, particularly in the realm of cryptocurrencies, exercising caution is paramount. Never invest more than you can afford to lose. Be vigilant against fraud and conduct thorough research before deciding to purchase Bitcoin or any other cryptocurrency.
This information aims to inform and is not an investment recommendation.