Bitcoin rises as its volatile year continues ahead of an expected ETF approval

05.01.2024

On Thursday, Bitcoin experienced a notable rebound, mitigating some of its losses incurred the previous day. The cryptocurrency had faced a sell-off as concerns emerged regarding the potential approval of a Bitcoin exchange-traded fund (ETF), widely anticipated to occur as early as the following week.

As reported by Coin Metrics, the leading cryptocurrency saw an approximately 3% increase, reaching $43,870.01. On the preceding day, it had witnessed a decline of up to 6%, driven by short-term traders speculating on the U.S. Securities and Exchange Commission’s reluctance to approve a Bitcoin ETF, leading to the liquidation of overleveraged positions.

Sam Callahan, the lead analyst at Swan Bitcoin, noted, “This rebound in Bitcoin follows a prudent clearing out of leveraged positions.” He added, “The rebound is likely tied to investors strategically positioning themselves in anticipation of the imminent approval of multiple spot Bitcoin ETFs. Such approval could serve as a significant catalyst for Bitcoin’s price in 2024 and beyond.”