On Monday morning, Bitcoin exceeded $41,000 for the first time in 19 months, as the crypto market grows on ETF expectations and bets on dovish Fed.
As markets opened on Monday, Bitcoin showed an impressive result of over $41,000 – a price unseen in over 19 months. The positive crypto market sentiment is boosted by Bitcoin ETF anticipation build-up and favourable economic conditions.
According to Coinmarketcap data, over the last 24 hours, Bitcoin has increased by 5,54%, while its growth in the last 30 days constituted 19,57%. The last time the BTC price reached such highs was recorded in May 2022.
The market boost is triggered by growing anticipation of a likely approval of Bitcoin Spot ETF applications by the U.S. Securities and Exchanges Commission (SEC). We have earlier reported that the court favoured Grayscale over SEC in the Spot Bitcoin ETF case. Another global financial player seeking Bitcoin ETF approval, BlackRock, has recently filed for Ethereum ETF as well, sending ETH price to over $2,000.
According to fresh media reports, the SEC has been meeting with representatives of two firms, to discuss the prospects of crypto ETFs and the conditions under which that would be possible.
Spot Bitcoin ETF, or spot bitcoin exchange-traded fund, is an investment vehicle allowing ordinary investors to gain exposure to the price movements of bitcoin in their non-cryptocurrency brokerage accounts. Unlike bitcoin futures ETFs, which invest in derivatives contracts based on bitcoin prices, a spot bitcoin ETF directly invests in actual bitcoins as the underlying asset.
Meanwhile, another factor has contributed to the crypto market growth too. The recent speech of Federal Reserve Chairman Jerome Powell prompted investors that the Fed might be done with raising interest rates for now.
Although the Fed Chair said it was too early to talk about cutting interest rates right now, he also stated that the regulator anticipates that growth in spending and output would slow over the next year since restrictive monetary policy weighs on aggregate demand.
As the Federal Reserve has been constantly raising interest rates since March 2022, the rates now stand at the highest level in the last 22 years.