Bitcoin (BTC) price breaks above $45K, days ahead of potential ETF approval

Bitcoin has surpassed $45,000 for the first time in over two years, as the market prepares for the likely approval of the first Bitcoin ETF in the United States.Bitcoin (BTC) has broken past $45,000 for the first time in nearly two years, as the market braces itself for a highly anticipated approval.

Bitcoin has risen swiftly from a price of $42,000 on January 1 to more than 6% in the past 24 hours and 170% in the last year. Bitcoin is already selling at a higher price than it did in 2023, marking a significant new yearly high for the asset just two days into 2024. The price performance of Bitcoin comes as the market prepares for the SEC to approve one or more of the 14 outstanding applications for a spot Bitcoin ETF product that are now awaiting a decision from the regulator. 

According to TradingView data, the last time Bitcoin traded above $45,000 was nearly 20 months ago on April 5, 2022, when Bitcoin closed the day at $45,241 before sinking into a protracted bear market that saw Bitcoin dip as low as $15,600. Market analysts are divided on the potential impact of an ETF approval on the price of Bitcoin in the immediate term. Due to falling implied volatility on Bitcoin options, analysts at crypto options trading platform believe Bitcoin will not enjoy a strong surge on the day of approval. 

Traders on X, on the other hand, are of a different mind, with Scott Melkor informing his 925,000 followers that Bitcoin is currently forming a “bull penant” after a month of consolidation at values around $40,000 per coin. Melkor expects that Bitcoin might reach $54,000 in the days following the SEC’s likely approval.  Meanwhile, VanEck advisor Gabor Gurbacs expects that the early days of a spot Bitcoin ETF will be a “let down” by wider market standards, but that the products will ultimately attract trillions of dollars in inflows over the following few years. 

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