Are Spot ETFs finally ready to push Bitcoin towards $60,000?

The entire cryptocurrency market, with Bitcoin (BTC) at the forefront, is currently experiencing a downturn, marked by a significant bearish trend. Despite this state of affairs, some analysts expect the leading cryptocurrency to recover by the end of the year. The recently approved Bitcoin Spot ETFs are expected to finally drive this change, they say.

The anticipated resurgence of Bitcoin (BTC)…

Having taken a significant dip in recent days, Bitcoin (BTC) is at the center of much speculation. The flagship cryptocurrency had surged past the $40,000 resistance it had impressively broken just weeks ago. It currently stands at around $41,700.

Despite the bearish context that has seen Bitcoin (BTC) lose 3.58% of its value over a week, the asset’s prospects are not dismal. On the contrary, the flagship cryptocurrency is expected to polish its profile over the course of the year.

At least that’s what analyst James Butterfill anticipates. According to him, by the end of this year, Bitcoin (BTC) will strengthen its valuation which is expected then to reach the $60,000 mark, a level the asset has not approached since 2021.

In a recent analysis, James Butterfill explains the levers that could support this projection. They primarily concern the historic recent approval of Bitcoin Spot ETFs by the American securities regulator.

Wave of Spot-Based Bitcoin ETFs Could Drive Bitcoin to $60K This Year: CoinShares pic.twitter.com/cOA1PKM1FO

— Abdulrehman Nawaz (@nearlydead97) January 23, 2024

Due to the recent emergence of Bitcoin Spot ETFs

On Wednesday, January 10th, the Securities and Exchange Commission (SEC) permitted 11 cash-settled Bitcoin ETFs. Among them are heavyweights such as BlackRock’s iShares Bitcoin Trust and Grayscale’s Grayscale Bitcoin Trust.

According to James Butterfill, this historic decision is poised to trigger fierce competition in the financial market. Indeed, this recent approval marks a significant change in the positioning towards the acceptance of digital assets by investors.

The launch of these Bitcoin ETFs marked a historic day with a record exchange volume of $4 billion. In this light, the analyst believes that an investment of 10% of the $3 billion of assets currently under management could propel Bitcoin (BTC).

The anticipated reduction of the Federal Reserve (Fed) rates, starting in early 2024, he adds, could enhance the appeal of the flagship cryptocurrency just as it does for gold. Overall, this position echoes one already expressed by asset managers like VanEck and Bitwise. For now, the crypto repercussions of the approval of the Bitcoin Spot ETFs are awaited. In the meantime, some believe that the collapse of BTC is just beginning.