In the cryptocurrency world, Bitcoin ETF has been on the agenda for a long time. Because if approval comes, there will be a large flow of funds. However, the expected approval has not yet come. The SEC continues to stubbornly delay. At this point, an analyst questions the possibility of this development. It also gives a date.
Bitcoin ETF approval possibility
The crypto community is eagerly awaiting the approval of the first spot Bitcoin Exchange Traded Fund (ETF). On the other hand, analyst Alex Krüger suggests that the probability of approval in January is around 70%. Krüger also points out that crypto traders are trying to get ahead of the market ahead of the ETF decision. Accordingly, he hints that he may be preparing to implement a “Sell the News” strategy. Additionally, an emerging correlation between the DXY US Dollar Index and Bitcoin raises the possibility of a potential rally in 2024.
Alex Krüger highlights the importance of the upcoming Bitcoin ETF decision. Krüger, who estimates the approval probability at 70%, thinks investors can adopt a “Sell the News” strategy to anticipate significant price movements depending on whether the SEC approves or rejects the fund. If the ETF is rejected, Krüger predicts a “post-news decline” to $23,000. If the opposite happens, an ETF approval could lead to “new yearly highs within a week.”
The number of ETF applications is increasing
The crypto industry has seen a surge in Bitcoin ETF applications. Accordingly, 16 spot ETF applications are awaiting approval. Kashif Raza, founder of Bitinning, notes that this represents an unprecedented number of filings with the SEC.
There are 16 applications in Que for a SPOT ETF approval.
12 for Bitcoin.
4 for Ethereum.
Never before you had so many applications in front of the SEC. pic.twitter.com/rxm9jpGyN4
— Kashif Raza (@simplykashif) October 5, 2023
Aside from the ETF approval catalyst, the increasing correlation between the US Dollar Index (DXY) and Bitcoin is promising. The correlation reached its highest level in 10 months at 0.73. It also previously coincided with the start of the 2023 Bitcoin rally. This pattern points to a potential rally in 2024 if history repeats itself.
Challenges for Bitcoin
Bitcoin BTC needs to test the critical $30,000 level in the 4th quarter to set the stage for the new year rally. Failure to overcome this resistance level will affect the chances of an upward price movement. Bitcoin, currently at $27,699, has increased slightly in the last 24 hours.
The upcoming decision on a Bitcoin ETF is attracting attention. Combined with factors such as the appreciation of the US Dollar, it has the potential to reshape Bitcoin’s trajectory. Investors are preparing for possible price fluctuations that will determine Bitcoin’s path in 2024.
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