Bitcoin Aims for $40K Upon Breaking $38K for the First Time Since May 2022
Bitcoin (BTC) Surges to Highest Level Since May 2022
Bitcoin Climbs Amid Quiet Trading
Bitcoin, the world’s largest cryptocurrency by market value, has skyrocketed to levels not seen since May 2022 on Friday. This surge in price comes amidst quiet trading in traditional markets, the day after the U.S. Thanksgiving holiday.
BTC Reaches $38,000
During the early hours of Friday morning, the cryptocurrency briefly touched $38,000 before retreating to levels around $37,800. BTC has now held above the $38,000 threshold for several hours and seems to be attempting to push higher.
Expectation of SEC Approval
The uptick in price is driven by investor expectations of a possible approval from the U.S. Securities and Exchange Commission (SEC) on a spot bitcoin exchange-traded fund (ETF). Laurent Kssis, in an interview with CoinDesk, commented on the potential impact of a BTC ETF approval on the market.
“With the BTC ETF lurking around the corner – which may be Jan .11 for the 14b1 consent (not s1 approval) there will be a new layer of volatility to the market,” said Kssis. He also explained that a bitcoin ETF would attract more turnover in volumes from institutional investors who are currently not active on crypto exchanges due to compliance restrictions.
Predictions for BTC
Kssis predicts that bitcoin could rally to $40,000 over the weekend if approved. He emphasized the significant volatility and additional risks for investors, but also the potential opportunities for arbitrage during this period.
“When approved, the volatility of BTC will be significant during these periods which create additional risks for investors but as well opportunities for those arbitraging. Would not be surprised if we see 40K being broken this weekend,” Kssis said.
Surge in Ether (ETH)
In addition to bitcoin’s surge, Ether (ETH), the second largest cryptocurrency by market value, also gained over 3% on Friday, reflecting the positive sentiment in the cryptocurrency market overall.
In summary, Bitcoin’s surge to its highest level since May 2022 has generated excitement and optimism among investors, driven by expectations of an SEC approval for a BTC ETF. With potential for further gains in the coming days, the cryptocurrency market is poised for increased volatility and trading activity.
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