Bitcoin prices rose today, reaching over $47,000, a 21-month high at the time of writing. This rally continues to highlight the bullish sentiment towards Bitcoin as investors hope that the upward price trend seen over the last four months will continue. Why did Bitcoin price rise today? Let’s find out together.
ETF Wars Continue
While macroeconomic data from the USA is awaited, Bitcoin prices continue to rise as volatility and the number of open positions increase. On January 8, all Bitcoin ETF Spot applicants officially completed the final step of the process. Currently, the Securities and Exchange Commission (SEC) is free to approve spot Bitcoin ETF applications.
Some analysts believe the Bitcoin price is on the rise towards $50,000, but Bitcoin will more than double the return of gold in 2023 and its momentum will continue into early 2024. MicroStrategy CEO and Bitcoin bull Michael Saylor believes the arrival of the spot Bitcoin ETF will be the biggest thing to happen to the entire financial industry since the inception of the S&P 500.
As a result of the positive atmosphere on the Bitcoin front, Bitcoin’s market value exceeded that of Berkshire Hathaway on December 5, 2023, remaining the 10th largest asset according to this data. Despite Bitcoin’s strength, the SEC remains cautious and issued another crypto FOMO warning on January 6.
It is reported that with this approval, the new demand for Bitcoin may reach 600 billion dollars. Analysts at CryptoQuant estimate that the approval of the ETF would increase Bitcoin’s market value by $1 trillion. Galaxy Digital predicts that the price of the Spot Bitcoin ETF will increase by 74% in the first year after launch. Even traditional banks seem to be expecting Bitcoin prices to rise. One of them predicts that the Bitcoin price will reach $200,000 by the end of 2025.
Recent filings requested by Spot Bitcoin ETF applicants highlight the potential for a fee war over the lowest fees of any financial institution. The minimum commission was set at 0.25% on January 8.
