Bitcoin’s rally to $39,000 sparked hopes for the approval of a spot Bitcoin ETF. Bitcoin, also known as BTC/USD, reached $39,000 per coin, the highest level since April 2022. According to CoinMarketCap, Bitcoin saw a nearly 3% increase in the last 24 hours and a 12% rise over the past month. Currently, Bitcoin is trading at $39,277.48, up 4% in the last seven days.
The recent surge in Bitcoin’s price is partially attributed to the growing optimism surrounding the potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). If approved, traditional investors would have a regulated avenue to invest in Bitcoin, potentially leading to a significant influx of capital into the crypto market.
However, it’s important to note that Bitcoin’s current value is still below its all-time high of $69,044 per coin achieved in November 2021. Crypto enthusiasts are contemplating the possibility of Bitcoin reaching $40,000 as they approach the end of the year.
The leading digital asset has witnessed a remarkable surge, outperforming traditional investments like stocks and gold, with a rebound of approximately 130% from the crypto downturn in 2022. The optimistic outlook is fueled by anticipated Federal Reserve interest-rate cuts in the coming year and the potential approval of the first spot Bitcoin ETF.
According to Fiona Cincotta, senior financial markets analyst at City Index Ltd, the approval of a spot Bitcoin ETF is crucial to reaching $40,000. Bloomberg also reported that the configuration of positions within the Bitcoin options market suggests a potential trading range of $37,000 to $40,000 for December.
Traders selling bullish call options with a $40,000 strike price are prepared to assume the opposing position, indicating that this level will serve as a significant test zone for Bitcoin’s potential resurgence.
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