Bitcoin, Ethereum, and Dogecoin Experience Growth Following Fidelity ETF News: Analyst Believes Leading Cryptocurrency Could Reach $40K Upon SEC Approval
Major cryptocurrencies traded higher on Monday as reports emerged that Fidelity is preparing to submit an application for a Bitcoin exchange-traded fund (ETF). Fidelity’s move follows similar applications filed by asset managers including BlackRock, WisdomTree, Invesco, and Bitwise earlier this month. However, approval from the Securities and Exchange Commission (SEC) is required for these applications, and Fidelity’s previous attempt to introduce a spot Bitcoin ETF in the US was rejected in 2021. Nevertheless, Fidelity successfully launched the Fidelity Advantage Bitcoin ETF in Toronto, Canada, in December last year.
In terms of price movements, Bitcoin was trading at $30,531, Ethereum at $1,871, and Dogecoin at $0.065. The top gainers in the last 24 hours were Stellar, Compound, and Bitcoin Cash, with gains of 11.48%, 7.14%, and 6.12% respectively. The global crypto market capitalization stood at $1.18 trillion, up 0.28% in the last day.
Meanwhile, the S&P 500 and Nasdaq Composite saw significant gains during Tuesday’s trading session, with both indices surging over 1%. This was driven by a resurgence in the technology sector following last week’s sell-off.
Analysts believe that the involvement of financial giants like Fidelity, BlackRock, Invesco, and WisdomTree in the quest for a Bitcoin ETF shows optimism that one of these firms will succeed in getting approval from the SEC. Edward Moya, a senior analyst at OANDA, noted that if a Bitcoin ETF is approved, the rally could push Bitcoin’s price to the $40,000 level, with initial resistance at the $34,000 level. However, any rejections or setbacks with ETF applications could temporarily slow down the rally.
Crypto analyst Michael Van de Poppe predicts that the current cycle in cryptocurrencies will resemble the period from 2015 to 2017, and institutional investors will play a significant role in ballooning the market to $10-15 trillion.
On-chain analytics firm Santiment observed that while Bitcoin’s price remained in the range of $29,000 to $31,000, altcoins showed positive indicators as they benefited from the profit redistribution generated by Bitcoin’s price surge.
Overall, the market sentiment in the cryptocurrency space remains positive, fueled by the potential for a Bitcoin ETF and the resurgence of the technology sector.