Bitcoin hits $47,000 on eve of SEC ETF verdict

The price of Bitcoin broke through the symbolic $47,000 barrier on Tuesday, reaching its highest level since April 2022. This spectacular surge comes just a few days before the SEC, the US stock market regulator, is due to rule on the potential approval of the first Bitcoin Spot ETFs.

Bitcoin hits new highs ahead of key SEC decision

For several years now, large institutional investors have been calling for regulated products to give them easier exposure to the Bitcoin market. Numerous asset management companies have applied for the launch of ETFs on BTC, and we feverishly await the SEC’s verdict.

With just one day to go before the January 10 deadline, speculative fever surrounding these funds continues to mount. Their approval would open the floodgates to a flood of institutional capital into the Bitcoin market.

Some experts predict that BTC could defy its record high of $69,000, or even aim for the mythical $100,000 mark, should the SEC give the green light.

Encouraging signals

This enthusiasm is sparking a wave of optimism among investors and analysts alike. The market is increasingly expecting the SEC to finally give the green light, if only to a handful of candidates from the fifteen or so pending applications.

As a result, the Bitcoin price has risen by over 6% in just a few hours, propelling the flagship crypto above $47,000 for the first time since late March 2022. Over the past twelve months, BTC has appreciated by over 177%, a sign that the winds are now in its favor.

At the same time, more than $76 million of short positions have been liquidated during this meteoric surge, amplifying the bullish rally according to Coinglass. The purging of shorts is fuelling and amplifying BTC’s bullish rally.

Admittedly, the SEC recently reminded investors of the risks of getting carried away by the craze. Nevertheless, optimism remains about the positive impact of spot Bitcoin ETFs on institutional flows. As we approach this decisive milestone, Bitcoin’s upward momentum could well continue.