Bitcoin Facing Crucial Friday as ETF Approval Rumors Swirl

There are rumors about the U.S. Securities and Exchange Commission's (SEC) finally greenlighting multiple Bitcoin exchange-traded fund (ETF) applications this Friday. 

They are based on reports from senior crypto reporters at TechCrunch and Fox Business's Charles Gasparino.

Their posts have stirred significant excitement in the crypto community given the long-standing anticipation for such a regulatory move.

Mixed expectations

A recent survey by Bitwise, involving 437 financial advisors, has revealed a divergence in expectations regarding the approval of a Bitcoin spot ETF. 

Despite Bloomberg ETF analysts estimating a 90% likelihood of a January approval, only 39% of the surveyed advisors share this optimism. James Seyffart, an ETF analyst, expressed surprise at these findings, especially considering the heightened media coverage surrounding the issue. 

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Nonetheless, 88% of these advisors see the approval of a spot Bitcoin ETF as a significant catalyst, with many indicating they would consider investing in Bitcoin post-approval.

Some market analysts, including Markus Thielen from Matrixport, argue that the recent applications may not meet the SEC's strict criteria. 

The potential listing of major Wall Street firms as authorized participants for potential Bitcoin-linked ETFs had initially sparked optimism, but the possibility of rejection has introduced uncertainty

More price volatility 

In the meantime, the Bitcoin (BTC) price is experiencing extreme volatility amid Bitcoin ETF approval rumors. 

Its price recently dipped below $41,000 earlier this week. The plunge was attributed to the contrarian Matriport report as well as high leverage.       

After recovering above $44,000, the crypto king once again dropped to $42,450 earlier today on the Bitstamp exchange.    

According to Hayes, the cryptocurrency might reclaim its all-time high of $69,000. After that, Bitcoin may face a significant correction of 20% to 30% from its peak level reached by early March.