Bitcoin’s 2023 recovery driven by ETF optimism

Bitcoin (BTC-USD) has had a volatile week, sliding back below $41,000 after a 12% increase in December. This volatility comes amid optimism that the SEC will approve its first spot bitcoin exchange-traded fund (ETF) early next year.

Greg Beard, CEO of Stronghold Digital Mining, sees potential for “tens of billions of dollars of additional demand” in the market as Bitcoin adoption continues to grow. Beard believes that the market is still in the early stages of Bitcoin adoption, and he is bullish on the potential for pricing as adoption increases.

The recent run-up in Bitcoin is largely attributed to the potential approval of ETFs by the SEC. If approved, ETFs could bring significant demand to the Bitcoin market. However, Beard believes that the impact of ETF approvals may be larger than the anticipated halving of Bitcoin mining rewards.

While some of the optimism surrounding ETF approvals may already be priced into the market, Beard notes that the actual purchase of Bitcoin by ETFs will only happen once they are approved and created.

Bitcoin’s journey has been marked by significant highs and lows, with 2023 being its best year since 2020 in terms of percentage gains. However, the recent volatility in the crypto market has also led to one of the worst selloffs of the year.

In conclusion, the future of Bitcoin remains uncertain, with market participants closely watching for developments around ETF approvals and broader market acceptance. For more expert insight and market analysis, watch the full episode of Yahoo Finance Live.

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