BTC Begins Week With 21-Month High, Eyes On Pending Bitcoin ETF Decision

A representation of bitcoin is seen in an illustration picture — Reuters

Bitcoin commenced the week on an impressive note, surging to a 21-month high while the nascent cryptocurrency industry awaited potential approval for the spot Bitcoin Exchange-Traded Fund (ETF) in the U.S.

On Monday, Bitcoin (BTC) witnessed an almost 7% surge, surpassing the $47,000 price point. This surge coincided with BlackRock, Fidelity, Grayscale, and other potential Bitcoin ETF issuers submitting their final S-1 forms to the U.S. Securities and Exchange Commission (SEC), hinting that these applications are in the final stages before potential approval.

Although Bitcoin, the world's largest crypto asset by market capitalization, experienced a correction in the past 24 hours, the buzz surrounding the potential spot Bitcoin ETF ignited the market, according to Michael Van de Poppe, the founder and CEO of MN Trading. He predicted that Bitcoin might fluctuate between the $48,000 and $51,000 price points.

"Quick correction took place in the past 24 hours, but the markets are quickly heating up towards the potential approval of the spot Bitcoin ETF. Expecting $48-51K to happen, but even more, altcoins to flourish after. Keep on buying the dips," he said in a tweet.

Quick correction took place in the past 24 hours, but the markets are quickly heating up towards the potential approval of the spot #Bitcoin ETF.

Expecting $48-51K to happen, but even more, altcoins to flourish after.

Keep on buying the dips.
— Michaël van de Poppe (@CryptoMichNL) January 8, 2024

The SEC faces its initial deadline to approve or reject the Bitcoin ETF applications of ARK Invest and 21 Shares by Wednesday. It's expected that the agency will approve multiple applications simultaneously to level the playing field.

Earlier today, SEC Chair Gary Gensler issued a warning to investors about the risks associated with investing in crypto assets.

"Investments in crypto assets also can be exceptionally risky & are often volatile. A number of major platforms & crypto assets have become insolvent and/or lost value. Investments in crypto assets continue to be subject to significant risk," Gensler said.

"Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams. These investments continue to be replete w/ fraud- bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors' money," the SEC chairman said in a follow up tweet.