Bitcoin (BTC), the world's largest cryptocurrency by market capitalization, rebounded to levels not seen since May 2022 on Friday during a period of quiet trading in traditional markets just after Thanksgiving in the United States.
The cryptocurrency briefly touched $38,000 early Friday morning but retreated to around $37,800. BTC has been holding above the $38,000 threshold for several hours now and appears to be heading for further growth.
This price rise coincides with expectations of possible approval of a Bitcoin ETF from the US Securities and Exchange Commission (**SEC**). Cryptocurrency-related stocks are also rising, with Coinbase (COIN) up 6%, Stronghold Digital Mining (SDIG) up 6.4%, and Marathon Digital Holdings (MARA) up 4%.
“With the arrival of the BTC ETF—possibly January 11th for 19b1 approval (not s1 approval)—the market is expecting a new level of volatility,” Laurent Xis shared in an interview with CoinDesk. “Because of its convenience and cost-effectiveness, the Bitcoin ETF will attract more volume from institutional investors who are not yet active on crypto exchanges because their compliance offices do not allow them to transact on these unregulated exchanges,” Xis explained.
Xis predicts that Bitcoin could reach $40,000 over the weekend. “If approved, BTC volatility will increase significantly, which poses additional risks, but also opens up arbitrage opportunities. I would not be surprised if we see the $40,000 mark break this weekend,” Xis noted.
Ethereum (ETH), the second-largest cryptocurrency by capitalization, also gained more than 3% on Friday. 📈
