Bitcoin is on the cusp of the $30,000 mark as investors bet on ETF approval. The markets are turning, and it looks like Bitcoin will break higher from here.
Bitcoin is currently trading at $29,538, up to 3.44% in the last 24 hours, according to CoinMarketCap. The flagship cryptocurrency surpassed $30,000 earlier as optimism on exchange-traded fund (ETF) approval grew.
Bitcoin Gains Bullish Momentum
JPMorgan said today that the U.S. Securities and Exchange Commission (SEC) will likely approve at least a Bitcoin spot ETF before Jan. 10, 2024. The date is also the due date for the SEC’s decision on Ark 21Shares application.
Previously, CEO of Ark Investment Cathie Wood told CNBC that Ark 21Shares’ application is progressing and the SEC showed changes in behavior.
JPMorgan’s comment is broadly in line with the predictions of Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence. The two experts predicted a 90% likelihood of a spot ETF getting approved in January.
Grayscale Investment, a prominent spot Bitcoin ETF applicant, announced today that it sent a new filing to the SEC. Grayscale’s goal is to convert Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF.
As explained in Grayscale’s blog post, the new development is in conjunction with the filing of an S-3 document, which is a more streamlined version of the conventional S-1 filing commonly used for issuing new shares.
The firm’s ongoing pursuit of a Bitcoin spot ETF offering reflects their willingness to navigate regulatory complexities.
The SEC, following a legal dispute with Grayscale, has shown no intention of appealing a court ruling in favor of Grayscale. Under the court’s request, the agency must review Grayscale’s proposal to convert its Bitcoin Trust to a spot product.
Additionally, the agency is reportedly reviewing other spot Bitcoin ETF filings, including those from BlackRock, Ark 21Shares, Bitwise, VanEck, Wisdomtree, and Invesco, among others.
Previously, experts suggested that the SEC would approve several spot Bitcoin ETFs simultaneously instead of one at a time.
What Did The Fed Say?
On Oct. 19, the Federal Reserve’s Chair Jerome Powell joined the Economic Club of New York to discuss the U.S. economic outlook and monetary policy. Powell outlined in his speech that the Fed is on track to meet their goals of maximizing employment and price stability.
“Incoming data over recent months show ongoing progress toward both of our dual mandate goals—maximum employment and stable prices,” said the Fed Chairman.
Powell’s statement was positive, but he left the door open for interest rate increases. While inflation is declining, it is too early to say that it is under control. Powell emphasized that inflation is still too high, and the Fed will continue working to bring it down to its 2% target.
Powell’s speech came ahead of the FOMC meeting scheduled for Nov. 1. Market experts predict that the Fed will make another increase by the end of this year. With rates going higher, the economy is in big trouble.
CME Group’s FedWatch, a market-based tool that tracks expectations for Federal Reserve interest rate decisions, shows a 97% probability that the US central bank will keep interest rates unchanged at its upcoming meeting.
Fed Governor Christopher Waller said during the European Economic and Financial Center (EEFC) conference on Oct. 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 or sparking runaway inflation is a tricky task. The federal agency is in a tough spot as the U.S. economy is giving mixed signals.
Despite the job growth, the rise in prices has slowed down a lot from earlier this year, and higher long-term.
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Author: Nicholas Say