Crypto investors are eagerly anticipating a significant decision from the United States Securities and Exchange Commission (SEC) that could pave the way for the trading of a Bitcoin exchange-traded fund (ETF). This comes more than a decade after initial attempts were rejected, and if approved, 13 companies, including BlackRock, the world’s largest asset management firm, are poised to offer ETFs.
The anticipation surrounding the SEC decision has been a driving force behind Bitcoin‘s significant price growth throughout most of 2023, with optimism surrounding the potential approval of a spot ETF. Presently, Bitcoin is trading at around $43,622.
However, Bitcoin’s price has demonstrated a historical tendency to decline in response to pessimistic reports concerning the approval of a Bitcoin spot ETF. The most recent instance occurred on January 3 when rumors of a possible rejection spooked the markets, resulting in an approximate 8% drop in Bitcoin’s value.
As the crypto market awaits the SEC decision in the coming week, two potential outcomes are considered: approval or denial. Regardless of the decision, some analysts point to another bullish catalyst on the horizon – the Bitcoin halving. Historically, this event has been associated with major price surges.
Analyst Ali shared a graph illustrating Bitcoin’s price performance 365 days after past halving events. The first halving event, which saw BTC mining rewards reduced to 25 BTC, led to a more than 6,000% surge in Bitcoin’s price, according to the chart.
Subsequent halving events in 2016 and 2020 resulted in an average yearly return profile of over 400%. While past performance does not guarantee future results, some investors find the historical correlation between Bitcoin halving events and price surges noteworthy.
The expected date for the next Bitcoin halving is predicted to be around block height 840,000, with a likely date of April 23, 2024, based on the current average block interval. Presently, Bitcoin miners receive 6.25 Bitcoins for each successfully mined block, a reward that will be halved to 3.125 Bitcoin during the next halving event.
