Bitcoin Price Prediction as Gary Gensler Says SEC Taking ‘New Look’ at Spot BTC ETFs – Approval Coming?

Arslan Butt
Last updated: | 3 min read

Bitcoin Recap

In the dynamic landscape of cryptocurrency, Bitcoin, the pioneering digital currency, has recently seen a downturn, slipping below the $43,000 threshold. This decline aligns with the broader crypto market, which witnessed a 0.25% drop in its global market cap, now standing at $1.61 trillion.

This shift comes amidst the US Consumer Price Index release, which has influenced market trends.

Despite a bearish US dollar, the crypto sector remains focused on pivotal developments, including the US Federal Reserve’s hint at potential rate cuts by 2024 and the SEC’s reconsideration of spot Bitcoin ETFs, both of which could significantly impact Bitcoin’s trajectory in the coming year.

As anticipation builds for a strong start in 2024, with events like the potential approval of a Bitcoin ETF, the market remains attuned to these macroeconomic factors and regulatory changes.

SEC’s New Stance on Bitcoin ETFs Shapes Market Outlook

It’s worth noting that the Securities and Exchange Commission (SEC) is reconsidering applications for spot Bitcoin Exchange-Traded Funds (ETFs) following recent court rulings.

SEC Chair Gary Gensler stated they are undertaking a ‘fresh evaluation’ of these applications, spurred by a court order related to Grayscale Investments’ attempt to establish a spot Bitcoin ETF.

Previously, the SEC consistently rejected such applications, but the court’s intervention has prompted a re-examination of their stance.

Major financial institutions, including BlackRock and Fidelity, are actively pursuing approval for spot Bitcoin ETFs.

Gensler has underscored concerns related to non-compliance with securities laws and other regulatory aspects within the cryptocurrency industry, pointing to challenges associated with fraud and malicious actors.

The recent court rulings have compelled the SEC to reevaluate its position on spot Bitcoin ETFs. Therefore, the SEC’s announcement to reconsider spot Bitcoin ETFs, influenced by recent court rulings, could positively impact the price of BTC.

Approval may lead to increased institutional involvement, instilling confidence and potentially propelling upward price movements.

Bitwise’s 2024 Crypto Forecast: Implications for BTC Price

Bitwise forecasts significant developments in the crypto space for 2024, including Bitcoin potentially surging beyond $80,000.

This surge is expected to be driven by the introduction of a new spot Bitcoin ETF and an upcoming supply halving. Bitwise also predicts that spot Bitcoin ETFs could become the most successful launch in ETF history, capturing around $72 billion in assets.

They anticipate Coinbase’s revenue doubling, Ethereum’s revenue more than doubling to $5 billion, and a significant reduction in Ethereum transaction costs following an upgrade.

The report also suggests that AI assistants will incorporate crypto for online payments, with stablecoins potentially settling more transactions than Visa. It envisions Taylor Swift entering the NFT space and prediction markets attracting over $100 million in stakes.

Therefore, Bitwise’s 2024 predictions, including Bitcoin reaching $80,000 driven by a new spot ETF, could positively impact BTC prices. Increased institutional interest and these positive developments may contribute to the cryptocurrency’s upward momentum.

Bitcoin Price Prediction

Bitcoin, the preeminent cryptocurrency, presents a complex technical outlook as of December 15th. Currently, Bitcoin hovers around $43,400, marking a critical pivot point in its 4-hour chart trajectory.

The asset faces immediate resistance at $44,715, with further challenges at $46,000 and $47,250. On the downside, support levels are identified at $41,695, $40,660, and $39,720, crucial for maintaining bullish momentum.

Technical indicators offer mixed signals. The Relative Strength Index (RSI) stands at 74, indicating a potentially overbought condition.  However, Bitcoin’s position above the 50-Day Exponential Moving Average (EMA) of $42,315 confirms a short-term bullish trend.

Bitcoin Price Chart
Bitcoin Price Chart – Source: Tradingview

A notable development in Bitcoin’s chart is the completion of the 38.2% Fibonacci retracement at the $41,650 mark. A breakdown below this level could see the next support forming around the $40,600 mark, corresponding to the 50% Fibonacci retracement level.

In conclusion, Bitcoin’s current trend remains cautiously bullish above the $43,400 pivot point. The short-term forecast anticipates testing resistance levels, with a keen eye on macroeconomic factors and market sentiment that could influence its trajectory.

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