Over the past couple of months, the crypto community has been anticipating the approval of a Bitcoin ETF. However, their attention has been focused on Bitcoin’s potential reaction to the much-awaited Bitcoin ETF approval. 

These speculations not only point to a bullish picture for Bitcoin but also hint at the cryptocurrencies going mainstream as well as institutional adoption that could propel the crypto space to new levels. 

How an ETF could just get Bitcoin to $50,000

The discussion around a Bitcoin ETF has become a crucial topic in the crypto community since, to most investors, it might be the bridge between traditional finance and decentralized finance. 

Data from CryptoQuant, a Data Analytics firm, provides a bright outlook for Bitcoin, with Bitcoin’s market capitalization projected to soar to $900 billion if a Bitcoin ETF is approved. This projection hints at a total market capitalization expansion of $1 trillion, pushing the total market cap closer to the $2 trillion mark.

The firm speculates that the next wave of institutional adoption could see financial institutions facilitating client access to Bitcoin via spot ETFs. 

In a scenario where financial entities seeking ETF approval allocate only 1% of their Assets Under Management (AMU) to these ETFs, this would channel a whopping $155 billion into the BTC market.

Such an influx could propel Bitcoin’s price to between $50,000 and $73,000, marking a significant market move from the current trading and resistance levels. 

On-chain metrics and Bitcoin price actions are showing positive signs

As we navigate the recent rumors surrounding ETF approvals (BlackRock ETF), Bitcoin’s price action and on-chain metrics show promising signs. 

Analyst Caleb Franzen pointed out that Bitcoin’s enduring support between the 200-week simple moving average (SMA) and the 200-week exponential moving average (EMA) is a promising sign. 

Image source: TradingView

This analytical observation and the short-term holder realized price (STHRP) metric acting as market support showcase an improving bullish outlook for Bitcoin. 

Image source: ChainExposed

These metrics, however, do not guarantee immediate price gains but highlight constructive market dynamics, enhancing bullish probabilities.

How the market reacted to ETF approval rumors

The recent market reactions to speculative news provide a sneak peek into the potential impact of ETF approvals. 

A recent false report concerning BlackRock’s spot Bitcoin ETF approval triggered a near 10% surge in Bitcoin’s price, although momentarily. 

This reaction underscored the demand and positive sentiment held by crypto investors and the community awaiting regulatory green lights. 

Experts also state that genuine approvals could catalyze much larger price rallies, with some forecasts hinting at a possible ascent to $42,000 post-ETF approval.

Also read: Misinformation Sends Bitcoin Soaring close to $30,000 – The BlackRock ETF Saga.

BTC shows resilience amid price volatility and market uncertainty

Despite the recent price rally triggered by fake ETF news and a subsequent $86 million short liquidation, Bitcoin’s market resilience cannot be dismissed. 

The market sentiment remains cautiously optimistic as the SEC gears up to announce its decisions on the spot ETF applications of Fidelity, VanEck, and WisdomTree. 

The Net Unrealized Profit/Loss (NUPL) indicator, reflecting a two-month high, suggests that investors are in profit, although cautious as they await further macro bullish signals.

Image source: Bitcoin NUPL

As reflected by the Relative Strength Index (RSI) and other technical indicators, the broader market sentiment suggests a cautiously bullish bias – meaning that although investors are anticipating a bullish trend, it might not just be so. 

Bitcoin’s price, currently hovering above the $28,500 mark, has managed to flip a crucial resistance level, hinting at a possible rally toward $30,000 if the bullish sentiment persists.

What does this mean for investors?

Although on-chain metrics are showing positive signs, it’s pretty clear that a Bitcoin ETF could push crypto market prices to new annual highs – as evident from the fake news published by Cointelegraph. 

But what does this mean for crypto investors? Markus Thielen, head of research and strategy at Matrixport, stated that no one can dare short Bitcoin now and for the unforeseeable future. This statement is a true testament to the bullish sentiment in the crypto market, and investors should start preparing for a possible bullish trend.