On December 19, Bitcoin made a triumphant return, surging above the $43,000 mark, driven by fresh developments surrounding the prospective launch of the United States’ inaugural spot Bitcoin exchange-traded fund (ETF).
Data sourced from Cointelegraph Markets Pro and TradingView illustrated a remarkable recovery in Bitcoin’s price, propelling it to local highs of $43,456 following the daily close.
After an initially uncertain start to the week, BTC/USD rapidly gained momentum, with the December 18th candle closing more than 5% above the day’s lowest point.
Subsequently, news emerged that asset management giant BlackRock, a contender seeking approval for the first-ever U.S. spot Bitcoin ETF, had revised its redemption policy to include Bitcoin as an option.
According to the latest version of BlackRock’s S1 filing with the U.S. Securities and Exchange Commission (SEC), the redemption of a shareholder’s shares for the underlying Bitcoin generally would not trigger a taxable event.
The document also outlined new regulations regarding the exchange of baskets of shares for cash instead of Bitcoin, with the latter contingent upon regulatory approval.
The SEC is scheduled to commence its final deliberations on spot ETFs in early January 2024, making the upcoming month a critical juncture for Bitcoin enthusiasts.
READ MORE: Grayscale Assesses Tax Implications for Spot Bitcoin ETFs Amid Regulatory Scrutiny
Multiple Bitcoin price predictions are contingent on the successful approval of the ETF, which is now perceived as highly probable after years of delays and rejections.
Bob Loukas, a trader and investor, expressed confidence in the approval process, remarking that “the level of SEC engagement and back-and-forth on the Bitcoin ETF tells us this is a 99.9% done deal.”
Meanwhile, the SEC delayed its final decision on several Ether ETFs until May.
In the interim, Bitcoin faces significant events, including the annual candle close and the release of various macroeconomic data, potentially contributing to holiday season volatility.
Traders are closely monitoring price levels, with the possibility of Bitcoin dipping below $40,000 still looming.
Crypto Ed, the founder of trading group CryptoTA, suggested this scenario might unfold before a final upward surge, potentially driving BTC/USD to $50,000 by the end of 2023.
Additionally, popular trader and analyst Matthew Hyland expressed optimism about further upside, citing a bullish divergence in Bitcoin’s relative strength index (RSI) versus its price on daily timeframes.
At the time of writing, the daily RSI stood at 60.45, having cooled off from the elevated levels when Bitcoin reached its recent 19-month high above $44,000.
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