Bitcoin Price Surges to $42,000 as Crypto Miner Skyrockets 430% Following Merger
SEC meeting with Grayscale, BlackRock, and Nasdaq fuels anticipation for bitcoin ETF approval. Bitcoin rallies to highest price in 20 months.
Cryptocurrencies are gaining traction as anticipation builds for the approval of bitcoin exchange-traded fund (ETF) applications by the Securities and Exchange Commission (SEC). If approved, these ETFs would create a new layer of institutional demand for bitcoin and allow investors to gain exposure to the cryptocurrency without directly purchasing or storing it. Recent reports from CNBC indicate that SEC officials met with representatives from Grayscale Investments, BlackRock, and Nasdaq to discuss their bitcoin ETF applications.
Grayscale Investments recently won a court case against the SEC, which found that the regulator had arbitrarily rejected their application to convert the Grayscale Bitcoin Trust into a spot bitcoin ETF. The SEC will have a brief window to approve ETF applications between January 5 and January 10, with analyst James Seyffart estimating a high likelihood of approvals between January 8 and January 10.
In addition to the potential for ETF approvals, bitcoin investors are also looking ahead to the next halving event, expected around April. Halving events help control the finite supply of bitcoin by reducing the amount of crypto rewards given to miners in half. The last halving event occurred in May 2020, and halving events typically occur after every 210,000 bitcoins are mined, approximately every four years.
Bitcoin has seen a significant rally, with its price reaching $41,900 and peaking at $42,140, the highest in 20 months. The cryptocurrency has surged 153% so far this year. Ethereum has also experienced gains, reaching $2,250, its highest level since May 2022, and rallying 88% in 2023.
In the stock market, Coinbase shares have seen a 10% increase, while MicroStrategy, heavily invested in bitcoin, has jumped 8.3%. Crypto miners Marathon Digital and Riot Platforms have also experienced significant gains. Additionally, the recent merger between bitcoin miners Hut 8 Mining and U.S. Bitcoin Corp has resulted in a new entity, Hut 8 Corp., which will begin trading on the Nasdaq and Toronto stock exchanges under the ticker HUT.
As the crypto market continues to evolve, investors are closely monitoring the SEC's decisions on bitcoin ETF applications and the upcoming halving event, while also keeping an eye on the performance of key cryptocurrency stocks. For more stock news and updates, follow Harrison Miller on X/Twitter @IBD_Harrison. If you're looking for the next big stock market winners, consider joining IBD Live to learn top chart reading and trading techniques from pros and stay updated on the best growth stocks to buy and watch.