On Wednesday, the U.S. approved the first exchange-traded funds (ETFs) that track bitcoin. This is a big deal for Bitcoin, the largest cryptocurrency, and the overall crypto industry. The Securities and Exchange Commission (SEC) gave the green light to 11 applications, including ones from big names like BlackRock, Ark Investments, Fidelity, Invesco, and VanEck. Despite some concerns from officials and investors advocates about the risks, these ETFs allow people to invest in Bitcoin without actually owning it. It's a significant step forward for bitcoin becoming more widely accepted as a legitimate investment, especially for institutional investors. This move is seen as a positive development for the crypto industry, which has faced its fair share of challenges.

Bitcoin Jumps over 6% on Anticipation of ETF Approval

Cryptocurrency markets experienced a significant boost as people anticipated the approval of spot bitcoin exchange-traded funds (ETFs) by the US SEC. The markets surged by more than 6% overnight in response to a tweet from the US SEC Chairman discussing crypto investing. Vikram Subburaj, CEO of Giottus Crypto Platform, credited this development for the rise in major cryptocurrencies.

Bitcoin, in particular, briefly surpassed $47,000 for the first time since April 2022. There's a belief that if spot ETF approvals happen this week, Bitcoin might push towards $50,000. However, Subburaj cautioned investors about potential market volatility, suggesting a careful approach over the next 7 days. He noted that Bitcoin dominance has reached 54.5%, signaling the strong performance of the leading cryptocurrency. Yet, he warned that an overly enthusiastic rally might lead to a correction later on. According to Coinswitch data, the total market capitalization of the crypto market has exceeded $1.8 trillion. The crypto fear and greed index, reflecting market sentiment, increased by 6 points compared to Monday, remaining highly positive.

Despite a brief dip to nearly $43,000 on Tuesday morning, the market responded positively to the SEC Chairman's tweet. Coin Switch identified $48,000 as a significant resistance level just before the crucial psychological mark of $50,000. The platform sees ETF approval as a "huge positive" for the industry, anticipating increased volatility at least until Wednesday.

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Edul Patel, CEO of Mudrex, shared insights into Bitcoin's prospects, highlighting a consistent upward trend over the past five days with a 10% gain month-to-date and an impressive 173% increase year-to-date. Patel suggested that a closing price above the current level could pave the way for the next resistance at $49,000.

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