Cryptocurrencies have experienced a mid-week resurgence, fueled by optimistic sentiments on Wall Street. Bitcoin, having tested the support level at $40,000, quickly rebounded above $41,000 on the same day. Following the favorable reception of Fed Chairman Jerome Powell's dovish speech by the markets, Bitcoin witnessed another surge, reclaiming the $42,000-$43,000 range.
The surge is further driven by optimistic updates on the advancement of spot ETFs for Bitcoin. BlackRock proposed a structural adjustment this week, permitting authorized participants (APs) to generate new shares using cash instead of cryptocurrency. This alteration opens avenues for major Wall Street banks like JPMorgan and Goldman Sachs, which are unable to directly hold cryptocurrencies, to venture into this space. Such a modification has the potential to substantially enhance ETF share liquidity by facilitating investment from prominent banks on Wall Street.
Source: TradingView Created by TR4G
Cryptocurrency market participants are increasingly eager as the final deadline for the acceptance of various ETF applications approaches, set to take place in early January. Speculations regarding ETF approvals, coupled with positive sentiments in global financial markets, are bolstering growth in the cryptocurrency market. The lower limit remains steady at the $40,000 USD level, while resistance is identified around the recent local highs of $44,400 USD.
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