Bitcoin recovers above $44,000 after short dip
Bitcoin bounced back with a three percent price increase on Thursday following a short dip below $41,000 on Wednesday.
The current price movement aligns with a recent bullish divergence. Bitcoin is now trading at $44,234 at press time, as investors dismissed the FUD (fear, uncertainty, doubt) behind the decline.
This suggests Bitcoin’s favorable progress, with the potential for further upward momentum targeting the $45,000 milestone. The awaited approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) would play a key role.
While there might be a hurdle around $45,259, turning it into a support level could pave the way for further gains.
The dip on Wednesday is attributed to FUD surrounding Matrixport, an all-in-one crypto financial services platform. Matrixport has recently released a pessimistic report speculating that the SEC would likely reject all pending Bitcoin ETF applications.
However, this FUD reason was debunked as spot BTC ETF applicants reassured users awaiting SEC approval with additional steps.
On Thursday, VanEck, Grayscale, and Fidelity submitted 8-a forms to the SEC for securities registration, a crucial step in the approval process. Though not a re-filing of applications, this step ensures sufficient detail to prevent hindrances during the anticipated approval wave between January 8 and January 10.
The filings followed a meeting between the SEC and major exchanges, including the New York Stock Exchange (NYSE), Nasdaq, and Cbo — seeking input on potential spot Bitcoin ETF approval.
Ether may be next in line
Matrixport analyst Markus Thielen, who previously speculated on a potential rejection or delayed approval of Bitcoin ETFs, clarified in a CoinDesk podcast that he ultimately anticipates the SEC allowing spot-based ETFs.
However, Thielen predicts a potential decline in Bitcoin prices in the coming weeks, citing technical indicators signaling a weakening uptrend.
He also mentioned that once spot Bitcoin ETFs receive approval, investor attention is likely to shift swiftly to Ethereum’s Ether (ETH), the second-largest cryptocurrency, with decisions on spot-based Ether ETF applications expected around May.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information