By: Eliza Bennet
Due to expected Federal Reserve rate cuts, Bitcoin's bullish case is stronger, however, this historically precedes recessions and triggers a rotation of money out of risk assets. Market expectations are high for the approval of a Bitcoin ETF with Polymarket bets reflecting an 83% odds of approval by January 15th, driven by the participation of hundreds of users. Market makers are also preparing to provide necessary liquidity in anticipation of SEC approval for bitcoin ETFs.
However, pressure mounts on Gensler to approve the ETF as traders anticipate a Bitcoin rally towards $50,000. The Bitcoin ETF, a regulated financial product, would provide both institutional and retail investors with easier access to Bitcoin prices without direct investment in the asset. This increases enthusiasm for a possible approval in 2024.
In other crypto market news, ARK Invest recently offloaded $25M of Coinbase shares amidst a halt in the crypto market rally. Binance also raises concerns by tagging several privacy coins, including Monero, Zcash, and Horizen, as 'at risk' of delisting. Meanwhile, despite softening stances toward crypto, Nigerian banks still face restrictions on holding or trading crypto on their behalf.
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