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Bitcoin is showing signs of a bullish continuation as reports suggest a possible approval of a spot Bitcoin Exchange-Traded Fund (ETF) in January next year. The asset has surged by 1% in the last 24 hours, trading at $44,090.30. Bloomberg ETF analysts James Seyffart and Eric Balchunas predict a 90 percent chance of the US Securities and Exchange Commission approving a spot Bitcoin ETF by January 10. However, even if the approval is granted, there may be a delay of weeks or even months before the ETF is launched.
Hashdex’s U.S. and Europe head of product, Dramane Meite, believes that a spot Bitcoin ETF may be accessible by Q2 2024. The exact timing of a spot Bitcoin ETF in the U.S. remains uncertain, but it is expected that U.S. investors will have access to it by the second quarter of next year, with a spot Ether ETF likely to follow.
Analysts caution that the journey to a new all-time high price record may not be smooth. The digital asset has faced multiple rejections at $37,500 and $38,500 in the past month, raising concerns about its strength from a derivatives metrics perspective. Corrections in the market have led to liquidation of long positions, resulting in approximately $390 million in losses.
Recent data shows a high demand for long positions in Bitcoin futures on the Chicago Mercantile Exchange (CME), while OKX’s top traders have also favored long positions. However, the ratio of long to short positions currently favors shorts by 38 percent, indicating that big players have stepped away from the rally. Top traders on Binance, on the other hand, have shown a preference for long positions by 16 percent.
Overall, while the approval of a spot Bitcoin ETF is anticipated, analysts expect volatility and potential challenges on the path to setting a new all-time high price record for Bitcoin.