Bitcoin and cryptocurrency stocks experienced a rebound on Thursday following a report by Fox Business on Wednesday evening.
The report suggested that federal regulators might potentially grant approvals for spot bitcoin exchange-traded funds (ETFs) as early as Friday, preceding the anticipated deadline of January 10.
This news likely contributed to the positive market response, as the prospect of regulatory approval for such financial instruments often influences cryptocurrency markets. Investors and enthusiasts closely monitor developments in the regulatory landscape for indications of increased mainstream acceptance and integration of cryptocurrencies.
The bitcoin price, which saw a 4.7% decline to $42,952.22 on Wednesday, recovered over 3% on Thursday, reaching $44,163. This follows bitcoin’s ascent above $45,000 on Tuesday, marking the first time the cryptocurrency surpassed this level since April 2022.
As of the end of 2023, bitcoin was trading at 20-month highs around $43,000, experiencing a notable surge from $27,000 at the end of September. In 2023, the world’s largest cryptocurrency exhibited a remarkable rebound of 158%.
During recent market activity, cryptocurrency exchange Coinbase (COIN) recorded a 2.2% gain, while bitcoin miner Marathon Digital (MARA) surged by 12.1% on Thursday. COIN stock, however, faced a 10.5% drop for the week. MARA stock showed a more than 2% increase on Wednesday after experiencing a 16.4% decline on December 29. Crypto stocks, in general, displayed a downward trend during regular trade on Wednesday. Bitcoin and cryptocurrency
Late on Wednesday, Fox Business, citing unnamed sources, reported that the Securities and Exchange Commission (SEC) might approve spot bitcoin exchange-traded fund (ETF) issues on Friday, potentially allowing trading to commence next week. The anticipation is that this approval could facilitate greater involvement from institutional investors in the cryptocurrency market, providing them with opportunities to offer exposure to their customers. The possibility of a bitcoin ETF has long been a point of interest for the financial industry, and any developments in this regard often influence the broader cryptocurrency market.