Why BTC price is $48,000 ahead of Bitcoin ETF decision

Bitcoin prices continued to move higher last week following the US Securities and Exchange Commission's (SEC) crackdown on popular asset manager Fidelity's proposed spot BTC Exchange-Treaded Fund (ETF).

The meeting held on December 7th included a detailed paper detailing Fidelity's “in-kind” creation and redemption models for the spot Bitcoin ETF. Several members of CboeBZX were also present at the meeting.

Loyalty meets SEC over Bitcoin ETF.

In its filing, Fidelity detailed how various parties collaborate to create the spot Bitcoin ETF shares, which are then delivered to the market maker for further distribution through a broker-dealer.

Nate Geracchi, president of ETF Shop, noted that the most important part of the process is that “registered broker-dealer entities do not touch a penny in any of the process.”

The presentation follows the availability of Fidelity's ‘FBTC' ticker on the US Depository Trust and Clearing Corporation (DTCC) website. Fidelity is the world's third largest asset management firm with over $4 trillion in assets under management.

This is not the first time that a Bitcoin ETF applicant has had to deal with the SEC. Last month, the financial regulator held talks with a number of applicants, including Greyscale, BlackRock, Hashdex and others.

What is next for BTC price?

Observers have pointed out that these engagements have helped increase the bullishness surrounding the crypto market.

Crypto trader Mags said Bitcoin was testing an important level, highlighting two scenarios where the price could return to $48,000 or $35,000. He added that the current market cap will continue to work in any case.

“BTC was trading in the high range in 2021-2022, the price later broke down and an established bear market bottomed out at $15,500. Price recently retook the old 2021-2022 range and is currently testing the mid-range… The overall sentiment is bullish, any dips are buying opportunities,” Mags said.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

On the other hand, asset manager Van Eyck said that the price of BTC is unlikely to fall below $30,000 in the first quarter of next year and may reach a new all-time high in the fourth quarter. On a firm basis, more than $ 2.4 billion will flow into the expected space Bitcoin ETFs were approved during the first quarter, preparing the ground for a bullish year for the top crypto.

“If Bitcoin reaches $100,000 by December, we're making a long call that Satoshi Nakamoto will be named Time Magazine's ‘Person of the Year'.” VanEck predicted.

According to data from BeinCrypto, the price of Bitcoin has increased by more than 180%. The underlying asset peaked at more than $44,000 a year, before recovering to its current level of $43,860 as of press time.