Bitcoin’s remarkable rebound in 2023, with a 160% increase, faced a significant setback as the year ended.
The cryptocurrency’s price fluctuated below $43,000 following an impressive surge in the first days of this year.
This volatility came amid broader market movements, with stocks also experiencing downturns on the last official trading day of the year.
Despite Bitcoin’s substantial growth, it still remained below its peak levels from the end of 2021.
A significant factor contributing to Bitcoin’s surge was the anticipation of the U.S. Securities and Exchange Commission’s (SEC) decision on a Bitcoin Exchange-Traded Fund (ETF).
Investors are keenly awaiting the SEC’s decision on a Bitcoin ETF by January 10th, 2024.
Approval of this ETF could simplify investing in Bitcoin and potentially attract a significant influx of funds into the cryptocurrency.
However, caution is advised as the market often follows a pattern of ‘buy the rumor, sell the news.’
Therefore, a price correction might follow the announcement despite potential short-term gains leading up to the ETF decision.
Moreover, the halving event scheduled for April 2024, which historically has been bullish for Bitcoin, adds another layer of complexity to future price predictions.
This market scenario highlights the unpredictable nature of cryptocurrencies, where various factors, including regulatory decisions and market sentiment, play a crucial role in determining price movements.
In a report, Markus Thielen, an analyst at Matrixport, stated that the SEC will reject all bitcoin ETF proposals this month.
Thielen mentioned that the recent applications don’t yet meet the criteria required for SEC approval.