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How will the approval of Bitcoin ETF applications affect the cryptocurrency market
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How will the approval of Bitcoin ETF applications affect the cryptocurrency market

Jan 3, 2024

In 2023, the value of Bitcoin significantly increased, especially after news about the potential approval of spot ETFs on cryptocurrency in the USA. The U.S. Securities and Exchange Commission (SEC) is expected to soon make a decision on the applications for the creation of these funds. This event is anticipated to have a significant impact on the price of Bitcoin and the cryptocurrency market as a whole.

Analysts suggest several scenarios for how events might unfold. Firstly, the approval of ETFs could lead to an increase in the price of Bitcoin, as it would open up the cryptocurrency to large capital. Secondly, there is a possibility that after the approval of ETFs, a so-called "altcoin season" might begin, where investors' attention shifts to other cryptocurrencies, increasing their value.

The influence of the policy of the Federal Reserve System (FRS) of the USA on the cryptocurrency market is also discussed. A decrease in inflation in the USA and a possible reduction in the FRS's base interest rate could positively affect cryptocurrencies, as it would simplify borrowing capital for investment in riskier assets, including Bitcoin.

The expected Bitcoin halving in 2024, which could attract additional attention to this cryptocurrency, is also mentioned. Overall, experts' opinions are divided: some predict an increase in the value of cryptocurrencies, while others expect a collapse. However, the actual results will only be known after real events in the market.

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