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Bitcoin (BTC) reached a pivotal milestone, with its price soaring to $39,000 on the Bitstamp exchange at precisely 16:45 UTC. This marks the highest level the digital currency has achieved since early May 2022.
The surge aligns closely with recent revelations about the official approval window for a spot Bitcoin ETF, a long-anticipated move in the crypto sector.
The anticipated approval window
In a recent post on the X social media network, prominent ETF analyst James Seyffart noted that the window for potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) is officially set between Jan. 5 and Jan. 10.
This announcement has stirred considerable excitement in the cryptocurrency community, with Seyffart suggesting that any approval orders would likely be issued on Jan. 8, 9, or 10.
Seyffart suggested there's a 10% chance or less that the approval might not occur in the expected timeframe. He speculated that such a delay could happen if Chair Gary Gensler decides to "go nuclear."
Alternatively, the analyst theorized that the SEC might not be fully prepared for this step and could have negotiated with firms like ARK Invest and 21Shares to withdraw their filing, possibly offering future assurances or a different path forward.
Why Bitcoin is surging
The surge in Bitcoin's price to its new 2023 peak can be attributed to several pivotal factors. This recent spike is credited to the optimistic views of influential investors and changing economic conditions.
The anticipation of institutional demand plays a significant role. Industry luminaries believe that increased Bitcoin adoption by financial giants like BlackRock and Fidelity could propel the cryptocurrency's price even higher. This, coupled with expected rate cuts, could be the perfect catalyst for another bull run.