Bitcoin Surges Beyond $38K, Sets Sights on $40K Milestone, Unseen Since May 2022

Bitcoin has recently achieved a notable milestone by surpassing the $38,000 mark, a level not seen since May 2022. The global leader in cryptocurrencies, Bitcoin (BTC), experienced this upward movement on Friday, amid a subdued atmosphere in traditional markets following the conclusion of the U.S. Thanksgiving holiday.

In the early hours of Friday, Bitcoin briefly touched $38,000 before retracing to hover around $37,800. What's particularly noteworthy is that BTC has managed to sustain its position above the $38,000 threshold for an extended period, indicating the potential for an upward trend.

This positive shift in Bitcoin's price coincides with heightened anticipation among investors regarding a potential approval from the U.S. Securities and Exchange Commission (SEC) for a spot bitcoin exchange-traded fund (ETF). On the same day, stocks related to the cryptocurrency market showed gains, with Coinbase's COIN experiencing a 6% increase, Stronghold Digital Mining (SDIG) rising by 6.4%, and Marathon Digital Holdings (MARA) climbing by 4%.

Laurent Kssis shared insights in a discussion, focusing on the imminent approval of the BTC ETF and the potential ramifications for the market. Kssis emphasized the likelihood of increased trading volumes from institutional investors who, constrained by compliance restrictions, have refrained from executing transactions on non-regulated crypto exchanges.

"With the BTC ETF potentially on the horizon, possibly on Jan. 11 for the 19b1 consent (not s1 approval), we may witness a new layer of volatility in the market,"

commented Kssis. He clarified that the ease of trade and cost-effectiveness associated with a bitcoin ETF could attract higher turnover volumes from institutional investors currently sidelined due to compliance restrictions.

Kssis further anticipated a potential surge in Bitcoin's value, suggesting that it could reach $40,000 over the weekend. 

"Upon approval, the volatility of BTC is likely to be significant during these periods, presenting additional risks for investors but also opportunities for arbitrageurs. It would not be surprising to witness the $40,000 barrier being breached this weekend,"

 he predicted.

Simultaneously, Ether (ETH), the second-largest cryptocurrency by market value, also displayed positive momentum on Friday, recording a gain of over 3%. The overall market sentiment appears to be influenced by developments in the Bitcoin space, setting the stage for an exciting weekend for cryptocurrency enthusiasts and investors alike.

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