Bitcoin’s price surged towards $45,500 in early trading, representing a 7% increase over the past 24 hours. This strong rally is attributed to the optimistic expectations that the Securities and Exchange Commission (SEC) will soon begin approving Bitcoin exchange-traded funds (ETFs). Notably, this is the first time since April 2022 that Bitcoin has surpassed the $45,000 mark.
The positive market sentiment surrounding Bitcoin has had a ripple effect on other cryptocurrencies like Ethereum and Dogecoin. Additionally, equities associated with digital assets have also experienced a boost.
MicroStrategy, a software company renowned for holding significant amounts of Bitcoin, witnessed a 7% surge in premarket trading. Coinbase Global, a prominent crypto broker, saw its stock rise by 4%. Furthermore, Marathon Digital, a notable Bitcoin mining company, registered an impressive 10% surge.
There is growing anticipation regarding the approval of Bitcoin ETFs. According to Reuters, the SEC may soon notify potential issuers that they have been cleared to launch ETFs as early as next week. These developments are expected to drive substantial investments into crypto funds.
MicroStrategy, Coinbase, and Marathon Digital are all considered strategic investments in Bitcoin. While the approval of Bitcoin ETFs is highly anticipated and seen as likely, some investors, including Cathie Wood from ARK Invest, believe that it could lead to a “sell the news” event, potentially exerting downward pressure on Bitcoin’s price. Consequently, the crypto-related stocks mentioned earlier may experience some retracement of their early-year gains.