On Oct. 23, 2023, Bitcoin (BTC-BTC) rallied sharply from around $30,500 to nearly $35,000. It settled to around $34,100.
Is BTC’s next stop to $40,000 or $50,000? Cryptocurrency traders recognize Bitcoin as the blue-chip and bell-weather of the industry. Their confidence grew when the SEC lost a case to prevent a spot ETF for BTC. Once approved, BTC liquidity should rise. Demand should increase as investors buy the ETF as a hedge against inflation, stock markets, and gold.
Risk
Markets assume that the SEC will expedite its approval of the ETF. However, chances are great that the regulator will take its time. This will increase speculation for BTC, causing greater volatility. The market may grow impatient, selling off Bitcoin in frustration.
Outlook
Expect the renewed bullishness for Bitcoin to continue. Optimism is rising that this is a legitimate alternative asset. Ethereum (ETH-USD) will benefit, as crypto investors hold a basket of assets. This will increase the potential addressable market for crypto assets, worth trillions in the next decade.
Your Takeaway
Add Bitcoin and Ethereum to the watch list. From there, explore the cryptocurrency universe, sorted by market capitalization. Tether USDt, BNB, and XRP are the next biggest cryptocurrencies after Bitcoin and Ethereum.
