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Bitcoin Zips Past $37K Amid Spot ETF Optimism, Stocks Slip on Fed Comments

Bitcoin Zips Past $37K Amid Spot ETF Optimism, Stocks Slip on Fed Comments

Closing off the week with FunderPro

Key Takeaways

  • Renewed optimism surrounding an ETF approval bolsters Bitcoin’s gains
  • The Dow Jones, the S&P 500 & the Nasdaq unite in daily losses

Bitcoin’s Time to Shine

Bitcoin flirted with $38k on Thursday, fueled by hopeful investors anticipating the approval of a spot BTC exchange-traded fund (ETF) approval. The favored digital asset has seen an impressive uptick of 5% in the last week, and over 33% in the last month. 

After keeping relatively flat over the last few days, market watchers were taken by surprise when the coin surged to levels not seen since May 2022. Currently trading at the $37k level, it looks like the coin’s rally has settled down – for now. 

The US Securities and Exchange Commission (SEC) has just begun an eight-day period stretching from November 9th through to the 17th,  where they can greenlight any pending ETF applications. This waiting period is the last chance the SEC has to usher any of the twelve pending applications into the arena before the end of 2023. This approval window follows in the tracks of Grayscale’s recent court victory to convert its $17 billion trust into a BTC ETF. 

Investors are also factoring in the upcoming halving in April of next year as a potential catalyst to boost the digital coin further. Speaking to Fox Business, Microstrategy Chairman Michael Saylor highlighted the potential effects of the halving and expected ETF approvals, stating that the upcoming year will be “pretty auspicious for the asset class”. 

Against the current backdrop, Bitcoin seems to be standing on solid ground. Any approvals of spot BTC ETFs by the SEC would make the dominating crypto more accessible to a broader range of investors through trading on more traditional exchanges, as a result boosting the coin’s value. On top of that, investors are becoming more comfortable with seeking safety in Bitcoin as a “safe-haven” during times of economic uncertainty, such as the Israel-Hamas war, a sentiment that is further increasing the ever-growing popularity of Bitcoin.

Up in Smoke

The Federal Reserve’s main man, Chairman Jay Powell spoke yesterday on a panel at the 24th Jacques Polak Annual Research Conference. Powell reiterated the central bank’s commitment to lowering inflation to its 2% goal, reminding the market that the central bank “will not hesitate” to tighten its monetary policy even further. 

Of course, this is nothing new and is a sentiment the Chairman has been pushing since he left the light on for further rate hikes while delivering a speech in October. Having said that, it seems the hawkish comments shook up markets. 

Following Powell’s market-moving insights, the major indexes bit the dust during Thursday’s session. The Dow Jones Industrial Average lost out on a further 0.65%, having already snapped a winning streak on Wednesday. Any remaining semblance of hope was lost when the S&P 500 and the Nasdaq erased 0.81% and 0.95% respectively, putting an abrupt end to their longest string of victories since 2021. 

To wrap it up, Bitcoin seems to be thriving as investors hold out hope for these ETF approvals from the SEC. For our traders, it’s important that you don’t let neither fear nor greed meander you from your strategy. Stick to your guns and don’t let your emotions control your trading. Take a moment to appreciate Bitcoin for what it is at its core – the center of a dynamic, volatile market.