Flagship cryptocurrency surpassed $30,000.
Bitcoin is on the cusp of the $30,000 mark as investors bet on ETF approval. The markets are changing and it looks like Bitcoin will go up from here.
Bitcoin is currently trading at $29,538, up 3.44% in the last 24 hours, according to CoinMarketCap. The flagship cryptocurrency surpassed $30,000 earlier as optimism grew over the approval of exchange-traded funds (ETFs).
Bitcoin Gains Bullish Momentum
JPMorgan said today that the US Securities and Exchange Commission (SEC) will likely approve at least one Bitcoin spot ETF by January 10, 2024. The date is also the deadline for the SEC’s decision on the Ark 21Shares application. Previously, Ark Investment CEO Cathie Wood told CNBC that Ark’s 21Shares application is progressing and that the SEC showed changes in behavior.
JPMorgan’s comment is largely in line with predictions from Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence. The two experts predicted a 90% chance of a spot ETF being approved in January. Grayscale Investment, a prominent Bitcoin ETF applicant, announced today that it has submitted a new filing to the SEC. Grayscale’s goal is to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
As explained in Grayscale’s blog post, the new development comes in conjunction with the filing of an S-3 document, which is a more simplified version of the conventional S-1 filing commonly used to issue new shares. The company’s continued pursuit of a Bitcoin spot ETF offering reflects its willingness to navigate regulatory complexities.
The SEC, following a legal dispute with Grayscale, has shown no intention to appeal a court ruling in favor of Grayscale. According to the court request, the agency must review Grayscale’s proposal to convert its Bitcoin Trust into a spot product.
Additionally, the agency is reportedly reviewing other one-time Bitcoin ETF filings, including those from BlackRock, Ark 21Shares, Bitwise, VanEck, Wisdomtree, and Invesco, among others. Previously, experts suggested that the SEC would approve multiple spot Bitcoin ETFs simultaneously instead of one at a time.
What Did the Federal Reserve Say?
On October 19, Federal Reserve Chairman Jerome Powell joined the Economic Club of New York to discuss the US economic outlook and monetary policy. Powell highlighted in his speech that the Federal Reserve is on track to meet its goals of maximizing employment and price stability.
Powell’s statement was positive, but left the door open to interest rate hikes. While inflation is declining, it is too early to say it is under control. Powell emphasized that inflation remains too high and that the Federal Reserve will continue working to reduce it to its 2% target. Market experts predict that the Federal Reserve will make another hike later this year. With rates rising, the economy is in big trouble.
Federal Reserve Governor Christopher Waller said during the European Economic and Financial Center (EEFC) conference on October 18 that the agency would take a careful approach before deciding on specific changes to interest rates.
Finding the right policy approach to sustain economic growth without overheating it or causing runaway inflation is a complicated task. The federal agency is in a difficult situation as the US economy is giving mixed signals. Despite job growth, price growth has slowed sharply since the beginning of this year and has increased over the long term.
By Audy Castaneda
