QCP Capital attributes Bitcoin’s price surge primarily to developments surrounding the much-anticipated spot ETF.
The cryptocurrency market is witnessing another dramatic surge in Bitcoin prices, with a remarkable 15% increase since the start of December. This uptick contributes to a significant 158% gain year-to-date for the leading token.
The catalyst for this latest surge was the SEC’s announcement on Dec. 1, stating that Jan. 5 would be the final deadline for rebuttal comments on spot ETFs. This timeline sets up the following week for probable approval, a development eagerly awaited by market participants.
QCP Capital had speculated in a previous update that the SEC might approve the first spot ETF on Jan. 3 to coincide with the 15th anniversary of the Bitcoin genesis block.
As Bitcoin hovers close to $45,000, questions arise about how much of this news has already been factored into the current prices. According to QCP Capital, the future trajectory, including the possibility of revisiting the all-time high of $69,000, largely hinges on the real market impact of the ETFs post-launch.
The firm cautions about the potential for a classic “sell-the-news” scenario if the ETFs do not bring substantial new flows.