Bitcoin Topped $41,700, What’s Next?

Bitcoin hit $41,750 today, exceeding the previous expectation of $38,000 in December. As halving is approaching, will $48,000 be possible?

Bull Run or Bull Trap?

Bitcoin surpassed $41,750 on December 4, up to 3.86% in the last 24 hours, according to CoinGecko data. Bitcoin’s market cap currently stands at around $800 billion, surpassing Tesla and Berkshire Hathaway.

As bull currently takes over the market, many altcoins also enjoy major increases with notable gainers including ORDI (35%), LUNC (52%), AST (26.85%), and FTT (16.66%), to name a few. Additionally, top cryptocurrencies surged by 1.5% on average. Ethereum was traded at $2,224, up to 3.20% while Solana crossed $64, a 1.57% increase in one day.

With three consecutive weeks in green, most crypto investors expect Bitcoin will soon skyrocket to $48,000 by halving. However, other investors are keeping a cautious eye on the macroeconomic data because the big picture looks bleak. Read more and take notes on some of the important events that might influence Bitcoin’s price and the market.

Spot Bitcoin ETFs

The U.S. Securities and Exchange Commission (SEC) is still weighing Bitcoin ETF proposals. Over 30 filings have been rejected up to date, not to mention some attempts to convert existing Bitcoin trusts into ETFs.

Major entities have vied for years to launch their spot Bitcoin ETFs. But it wasn’t until BlackRock’s move in June that a long-dormant bullish momentum gathered, sending Bitcoin up 25% since then.

Following Wall Street waves, a recent court ruling in Grayscale’s favor has cast doubt on the SEC’s previous justifications for denying spot ETF applications. This, along with a number of meetings between the SEC and ETF companies in recent weeks, has many experts believe that a spot Bitcoin ETF approval could be imminent, possibly as early as January 2024.

The SEC reportedly met with Grayscale and BlackRock over their ETF filings. ARK Invest and 21Shares also confirmed discussions with the agency regarding their respective products. Following these meetings, Grayscale and BlackRock made a few adjustments to their filings.

While many are betting on a green light, the SEC still might reject spot Bitcoin ETFs. The biggest factor that can make the SEC decline a spot Bitcoin ETF application is concern over market manipulation and investor protection, which is believed to be solved after Binance’s landmark settlement.

Even if that happens, though, analysts believe the long-term outlook for Bitcoin’s price remains positive. One of the key factors is the halving event.

Bitcoin Halving

Apart from spot ETFs, increased attention is also on the next bitcoin halving set for April-May next year. Approximately every four years (or after every 210,000 blocks), the reward that miners receive for adding a new block is halved.

Data indicates that Bitcoin’s price sees major growth following halving. It jumped from $12.35 to $964 after the first halving, and similar patterns repeated after the two consecutive halving events that followed. Analysts anticipate a similar surge several months after the upcoming fourth halving.