Bitcoin has achieved a milestone, reaching a price point of $47,000 for the first time since April 2022. This significant price movement comes amidst a market that is bracing for potentially impactful news on the cryptocurrency regulatory front.
The ETF hype and price predictions
Investors and market spectators are closely monitoring the expected approval of a spot Bitcoin Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission. The decision is reportedly due on Wednesday, and there’s rampant speculation about how this could affect Bitcoin’s price trajectory.
High-profile figures in the crypto space, such as Arthur Hayes, have posited that approval could send Bitcoin soaring to as high as $70,000. Yet, he tempers this prediction with a cautionary forecast of a subsequent sharp correction. According to Hayes, a “healthy” 20% to 30% retracement from early March prices is plausible, and a decline could reach up to 40% if Bitcoin hits the $60,000-$70,000 range in the upcoming weeks. He further predicts that Bitcoin will experience an initial sharp decline with broader financial markets, only to rebound before the Federal Reserve’s meeting due to its status as a “neutral reserve hard currency.”
CryptoQuant, another analytical voice in the sector, has suggested that the approval of a Bitcoin ETF might trigger a ‘sell-the-news’ event.
Despite the varied predictions, one thing analysts agree on is the high demand for a Bitcoin ETF, indicating a bullish outlook for its uptake.
The broader crypto market
Over the past 24 hours, the cryptocurrency market has displayed a mixed performance with Bitcoin (BTC) showing a notable increase of 6.5% in its price, which appears to be leading the market.
Ethereum (ETH) follows with a modest gain of 4.2%, while Binance Coin (BNB) and Ripple-affiliated XRP show smaller upticks of 0.4% and 2.1% respectively. In contrast, Solana (SOL) has added 4% after seeing a significant downturn of 8.8% over the past week.