Bitcoin Traders Record Breakthrough as $44,000 Support Holds Amid ETF Approval Saga

Bitcoin has rebounded from its initial slump to $40,000 earlier in the year and now trades above $44,000. With the January 10 due date for a Bitcoin ETF decision drawing near, much speculations and rumors are fueling its price hike. 

Approval or rejection of Bitcoin ETFs will likely lead to price volatility in the market. Therefore, the next few days are critical to investors and Bitcoin enthusiasts. 

Trader Believes Bitcoin Will Likely Record Price Increase 
In a January 7 X post, Crypto trader and commentator Matthew Hyland told his followers that the Bollinger Bands (BB) on the BTC chart are tightening. A close look at the Bitcoin chart reveals an expansion leading to a price increase following each period of contraction on the Bollinger Band.

So, Hyland believes that a price increase will likely occur soon, although there are no guarantees. 

#BTC Bollinger Bands tightening even more heading into ETF week: pic.twitter.com/ah6TlFRZEo

— Matthew Hyland (@MatthewHyland_) January 7, 2024

Another trader, Daan Crypto Trades, noted in a January 7 tweet that Spot Premium was active on the BTC market. According to Daan Crypto, derivatives traders are proceeding with caution due to the massive liquidations suffered last week.

In another tweet, the prominent trader stated that interest is rising from BTC buyers as they open new long positions. 

#Bitcoin ETF Frontrunooooors are back.

Open interest ramping up with fresh longs. pic.twitter.com/v5HgtswQ7N

— Daan Crypto Trades (@DaanCrypto) January 7, 2024

Bitcoin ETF Speculation Dominates Financial Markets Despite Critical Financial Updates 
The Bitcoin ETF speculation continues to dominate headlines despite other vital financial data that could influence prices. Some of them include the U.S. inflation data figures, the Consumer Price Index (CPI), and the Producer Price Index (PPI), which will be released in the coming days. 

These key metrics could affect prices in the crypto market if inflation rates are high. However, the BTC Spot ETF decision remains the most anticipated event in the crypto space.

Remarkably, the Bitcoin ETFs’ possible launch on Wall Street is in progress, and a final revision from the leading asset managers is expected today, January 8.

According to crypto analyst James Seyffart, on X, amendment filing for Bitcoin ETFs was considered on January 5. This implies that a final decision is underway, pending when all necessary corrections and adjustments are duly implemented. 

For everyone asking about today:
Today we’re looking for 19b-4 amendment filings that’ll include changes that SEC and issuers have been discussing for weeks. Namely cash create/redeem. (honestly I expected these by now)

Still expecting potential approval orders next week. https://t.co/ywdf34Y8VI

— James Seyffart (@JSeyff) January 5, 2024

Also, Senior Bloomberg analyst Eric Balchunas stated that Bitcoin ETFs offer a new form of investment for BTC lovers. Investors can hold a stake in BTC without owning it directly. 

However, he noted that the SEC has not voted on the approval of the dismissal of spot Bitcoin ETFs. Summarily, he believes that the SEC is in a tight corner ahead of the approaching deadline, although there are no guarantees of approval. 

Re the “but the SEC hasn’t voted” and how that’s some kind of poss rug pull. Few things, the SEC has never voted on bitcoin ETFs (spot denials or the futures approvals), they were denied or approved via “Delegated Authority” (see below from commish Peirce speech) which would make… pic.twitter.com/X8pzQchexj

— Eric Balchunas (@EricBalchunas) January 6, 2024

Meanwhile, Bloomberg reports that the SEC has until 8 a.m. on Monday to submit relevant documents for the ETFs. Also, if the approval occurs, then the Spot ETFs could begin trading as soon as the next day after the approval. 

Additionally, the SEC has a closed meeting scheduled for January 11, which will likely touch on the Bitcoin ETFs issue. Overall, if the Bitcoin ETFs eventually get approved, it will likely lead to a spike in the value of BTC and other cryptocurrencies.