Bitcoin Continues to Delight Investors By Surging Ahead

Bitcoin’s performance in 2023 was extraordinary. It has already entered 2024 with bullish momentum. Several crypto experts and enthusiasts are anticipating that the SEC will approve the Bitcoin ETF in the near future. Their anticipations are grounded in reality because Bitcoin has gained enormously in 2023 and its prices have hovered around $40K. Moreover, asset management companies like Blackrock have sensed golden opportunities in this surge and have applied for a spot in Bitcoin ETF.

Positive Factors Responsible for Bitcoin’s Surge

The price surge of Bitcoin is not happening in isolation. There are many positive factors responsible for increasing the credibility of Bitcoin among investors. These factors together are positively affecting its prices.

SEC’s Approval of Bitcoin ETF

Crypto proponents are enthusiastically anticipating that once the SEC approves the spot Bitcoin ETF, then it can generate a lot of funds for the expansion of the cryptocurrency sector. This optimism is favoring the price of Bitcoin for the last few months. Many crypto investors are gaining more confidence about Bitcoins and are sensing profitable opportunities. Moreover, the prospects of exchange-traded products are also favorable because the markets have turned bullish.

US Provincial Governments Taking Strong Action Against Scammers

Investors in the cryptocurrency market are becoming more confident as some US provincial governments have taken strong action against individuals and companies misusing cryptocurrencies. Certain US provinces such as New York have drafted a bill to fight frauds and clean the multi-billion dollar crypto sector. California and Illinois have also adopted similar laws to protect investors and punish crypto scammers even when they are operating abroad. In November 2023, Binance’s CEO was sentenced to 18 months in prison and had to pay a whopping $4.3 billion as compensation. Consequently, these tough measures against crypto scammers are generating positivity and leading to Bitcoin’s price rise. 

Renewed Attention of Asset Management Companies

Out of all major cryptocurrencies, Bitcoin is gaining renewed attention from asset management companies. Those companies are BlackRock Asset Management, Bitwise Investment Advisers, Wisdom Tree Investments, VanEck, and Fidelity for ETF approval. BlackRock has gone many steps further ahead by submitting updated 19b-4 filings for proposed spot Bitcoin ETFs.  Grayscale Investments, Invesco, and ARK 21 Shares have also submitted such applications. These actions are therefore impacting the price of Bitcoins positively. 

Federal Reserve’s Recent Policies and Decisions

The US Federal Reserve has taken certain policies and decisions that are indirectly impacting the prices of Bitcoins. Undoubtedly, Bitcoin is gaining from the Federal Reserve’s decision to hike benchmark interest rates. Consequently, inflation rates are declining because of this decision. Moreover, there are widespread expectations that the central bank may start liberalizing monetary policy in the middle of 2024 to keep the economy on track. 

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Conclusion

Bitcoin’s price surge is generating enthusiasm among many crypto investors. Many positive factors are influencing its growth. These factors include the much-awaited SEC approval of spot Bitcoin ETFs and renewed interest in asset management companies such as Blackrock. The policies and decisions of the Federal Reserve too are currently favoring the rise of Bitcoin. The confidence levels of crypto investors towards Bitcoin are also increasing because the US provincial governments are taking strong actions to penalize crypto scammers. 

Source: https://finance.yahoo.com/news/raj-chowdhury-says-bitcoin-etf-080000308.html