Traders Predict That Bitcoin Will Rise to $50,000 as Gensler is Under Pressure to Approve ETF

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Last Updated on January 4, 2024 by Bitfinsider

Thursday morning in Europe, Bitcoin (BTC) was trading little above $43,000, regaining some of the losses that it had suffered on Wednesday due to a leverage flush that caused markets to respond negatively to analyst reports.

This month, the biggest cryptocurrency might increase to $50,000, according to Yield App’s chief investment officer Lucas Kiely. Kiely dismissed analysis suggesting that the U.S. Securities and Exchange Commission (SEC) would not approve a spot bitcoin exchange-traded fund (ETF) and instead stated that he expected it would.

After falling more than 10% in the previous day, major tokens like Cardano’s ADA, ether (ETH), and solana (SOL) began to stabilize early on Thursday. During the same time frame, the CoinDesk Market Index (CMI), a broad indicator of the market, fell 6%, marking the largest decline in recent weeks.

Memes like Shiba Inu (SHIB) and Dogecoin (DOGE) saw declines of more than 12%. One of the few winners was Sei Network’s SEI, which benefited from growing optimism.

The number of unsettled futures contracts, or open interest, dropped by $5 billion, the greatest decline in recent months, and north of $600 million in liquidations resulted from a late-night futures unwinding on Wednesday, the largest amount in a year.

Research firm Matrixport stated that it anticipated “the SEC to reject all proposals in January” for a spot bitcoin ETF, coinciding with the beginning of Wednesday’s collapse. The market’s mistrust has been reinforced, according to options expert GreeksLive, who shared the prognosis, citing “weakness in crypto mining stocks, and the sell-off in several crypto-related U.S. stocks”.

Kiely of Yield App disagreed, telling CoinDesk in an email that it was appropriate to disregard reports that the SEC will not approve a bitcoin spot ETF this month.

“I think it’s still likely that we see an approval from the SEC in January,” Keily stated. The chairman of the regulatory body was specifically mentioned when he said, “There is too much pressure and expectation from the world’s biggest asset managers for Gary Gensler and the rest of the approval committee to keep kicking the can down the road.”

“I don’t expect to see a massive sell-the-news event as some have predicted. Rather than falling as low as $32,000, I think that bitcoin will take $50,000 by the end of January and we will see a record print of BTC this year,” he stated.

Because of the possible approval of a spot ETF, companies like on-chain data provider CryptoQuant predict that bitcoin will fall as low as $32,000 next month. They claim that traders’ unrealized profits are currently sitting at a level that historically precedes a so-called correction, which for cryptocurrencies typically refers to a decline of 10% or more.

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