The price of Bitcoin has exceeded the $45,000 mark for the first time in nearly two years. The main logic behind it is that people are increasingly expecting SEC approval for exchange-traded funds (ETFs) that directly invest in Bitcoin. January 10, 2024 is the deadline for the U.S. Securities and Exchange Commission (SEC) to issue a formal response on whether to approve a Bitcoin spot ETF.

Data shows that the cryptocurrency rose 4% on the first working day of 2024, reaching its highest level since April 6, 2022. As of press time, Bitcoin was trading at $45,510. Other cryptocurrencies also rose, with Ethereum, the second-largest cryptocurrency by market capitalization, rising as much as 2.6%.


Bitcoin has gained more than 15% since early December as the Jan. 10 deadline for the U.S. Securities and Exchange Commission (SEC) to approve a Bitcoin spot ETF approaches.

Hayden Hughes, co-founder of the social trading platform AlphaImpact, said that some traders in the United States and Europe are worried about missing out on investment opportunities before the upcoming approval. "And retail investors have already started buying heavily on January 1st, which is the first thing they do in the morning of the New Year."Hayden Hughes said.

Some traders who are optimistic about the future of cryptocurrencies expect that Bitcoin will soon hit $50,000, thanks to the optimism triggered by the potential approval of an ETF.

In addition, Bitcoin’s wave of price recovery over the past half year has also been driven by broader risk sentiment triggered by expectations of lower U.S. interest rates and expectations of a rate cut by the European Central Bank. This rebound has made up to a certain extent the severe damage caused by the 2022 wave of cryptocurrency slumps across the board. However, Bitcoin prices are still below the historical record of nearly $69,000 reached during the 2021 COVID-19 epidemic.

But in 2024, the historical record of $69,000 is likely to be broken. Some industry executives insist that a new Bitcoin bull market has begun, mainly based on two major events: Bitcoin's "halving" and the high likelihood that Bitcoin exchange-traded funds (Bitcoin spot ETFs) will be approved for the first time in the United States.

James Butterfill, director of research from CoinShares, said the outlook for crypto assets will "change significantly" in 2024, driven by the potential approval of a Bitcoin ETF by the U.S. government. “This long-awaited development will expand the investor base of crypto assets and integrate them more closely with traditional financial markets,” Butterfill said in an interview with the media.

“There are forecasts that a 20% increase in investment (approximately US$3 billion) from the assets currently managed by asset managers may push the price of Bitcoin to US$80,000.” At the same time, Butterfill added that expectations of interest rate cuts by global central banks may also “play a decisive role” in driving Bitcoin prices higher.

In November 2023, Standard Chartered issued a report stating that the $100,000 mark will be strongly driven by the approval of many ETFs. The bank also said that the halving event will also support Bitcoin price trends. As early as April, Standard Chartered Bank released a report predicting that Bitcoin is expected to hit US$100,000 by the end of 2024.