Bitcoin hits three-week high as SEC mulls over spot EFT

"Bitcoin, has finally woken up,” Naeem Aslam, a market analyst at AvaTrade, said

Bitcoin and Ethereum rallied in overnight trade to hit their highest levels in nearly three weeks, as the US Securities and Exchange Commission considers approving the first spot Bitcoin exchange-traded fund (ETF).

The largest digital currency by market cap climbed 3.4% to US$42,256, while Ethereum rose $2,986, the highest prices since 3 March.

Bitcoin had spiked as high as $43,116 this morning, before retreating slightly.

And Ethereum briefly broke past the US$3,000 resistance level before also falling back slightly.

Naeem Aslam, a market analyst at AvaTrade, believes “the crypto king, Bitcoin, has finally woken up.”

“On the fundamental side, investors are waiting for a decision by the SEC to approve its first spot Bitcoin ETF,” he added.

“Yesterday, the agency said it would extend its window to make a decision on WisdomTree’s Bitcoin investment vehicle.

“Having approval on spot Bitcoin ETF will really change the game for Bitcoin, and the truth that the SEC hasn’t rejected the decision this time has increased the odds for a more positive news time.”

Aslam, however, points out that only when Bitcoin breaks past US$50,000 “can we say the price narrative has dramatically changed”. Until then “bearish sentiment is likely to prevail,” he added.

Australia also looks set to introduce some of its own regulations surrounding crypto, which will include a taxation system, licences for providers and regulation of digital banks and exchanges.

It remains to be seen how strict these reforms could be, and what affect they would have on the market.

In some of the altcoins, Solana was up by 1.49% to US$90.36, Avalanche was up 1.38% to US$88.47 and Cardano climbed 5.97% to US$0.9384.

Source: ProactiveInvestors

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