Optimistic Outlook: Traders Express Confidence in Bitcoin Surge to $50K Amid Growing Pressure on Gensler for ETF Approval

Solana (SOL), Ethereum (ETH), and Cardano's ADA saw a positive turn on Thursday, stabilizing after a recent 10% dip within 24 hours. Meanwhile, Bitcoin (BTC) showed signs of recovery, trading just above $43,000 during the European morning. The rebound followed a 7% decline triggered by a leverage flush on Wednesday, driven by market reactions to analyst reports.

Lucas Kiely, Chief Investment Officer of the wealth platform Yield App, provided a bullish perspective, expressing optimism about Bitcoin's potential rally to $50,000 this month. Kiely confidently expects the U.S. Securities and Exchange Commission (SEC) to approve a spot Bitcoin exchange-traded fund (ETF), dismissing opposing analyses.

In the volatile market conditions, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) experienced over a 12% decline. Interestingly, SEI Network's SEI emerged as one of the few gainers, fueled by increasing hype. The turbulence continued with a futures unwinding on Wednesday, resulting in over $600 million in liquidations—the highest in a year. Simultaneously, open interest, reflecting unsettled futures contracts, plummeted by $5 billion, representing a substantial decline in recent months.

$5 billion in open interest wiped out from the #crypto market !!! pic.twitter.com/ATB7Ai2bzE

— Coinalyze (@coinalyzetool) January 3, 2024

Wednesday's market turbulence aligned with research firm Matrixport's prediction of the SEC rejecting all proposals for a spot Bitcoin ETF in January. Options analyst GreeksLive shared a similar sentiment, attributing market skepticism to weaknesses in crypto mining stocks and the sell-off in various U.S. crypto-related stocks.

Contrary to these cautious views, Yield App's Kiely countered the narrative, urging disregard for reports suggesting the SEC won't approve a Bitcoin spot ETF in January. He maintained optimism, emphasizing the immense pressure and expectations from major asset managers on Gary Gensler and the approval committee.

Kiely confidently refuted the possibility of a significant sell-the-news event, projecting Bitcoin's ascent to $50,000 by the end of January and a record-setting year for BTC. However, CryptoQuant and other firms anticipate a potential drop to $32,000 next month following a spot ETF approval, citing traders' unrealized profits reaching levels historically preceding corrections in the cryptocurrency market, which for cryptocurrencies typically refers to a decline of 10% or more. 

Read More: Predicted Surge: Analyst Envisions Bitcoin at $45K by Year's Close