The cryptocurrency market is buzzing with excitement as the Crypto Fear and Greed Index reaches “extreme greed” levels, indicating increased optimism among investors. Because the expectation of approval of the spot Bitcoin exchange traded fund (ETF) also fuels this excitement. In this news recap, we discuss the views of a former SEC chairman who predicted strong trading volumes and the inevitable approval of a spot Bitcoin ETF.
Bitcoin made a new peak
Investors betting against higher Bitcoin (BTC) prices have lost over $100 million in the past 24 hours as expectations for spot Bitcoin exchange-traded fund (ETF) approval in the US near the finish line. BTC gained as much as 9% on Monday as prices broke above $47,000 for the first time since April 2021. Traders on the crypto exchange OKX suffered the most losses with $84 million, followed by Binance with $71 million. The Crypto Fear and Greed Index, a key indicator of market sentiment, rose to 76 points, reaching “extreme greed” territory. This marks the highest level of sentiment seen since mid-November 2021, when Bitcoin peaked at $69,000.
Taking into account various factors such as volatility, market momentum, social media and surveys, the index highlights the current optimism in the crypto space. In particular, Bitcoin’s sentiment index briefly reached the “extreme greed” level in early December, coinciding with the period when the cryptocurrency surpassed $40,000. The prospect of an approved spot Bitcoin ETF has been a major driver of this optimism, and the index reached similar levels in November 2021, aligning with Bitcoin’s previous all-time high.
ETF comment from the former chairman of the SEC
In a significant development, former SEC chairman Jay Clayton expressed confidence that a spot Bitcoin ETF will be approved soon during a recent interview with CNBC. Clayton noted that over the past decade, the SEC has consistently rejected such applications, citing concerns about market manipulation and fraud. However, he believes the environment is evolving positively, making ETF approval inevitable. Clayton acknowledged the significant improvement in the underlying market dynamics for Bitcoin over the past five years, pointing to advances in infrastructure and custody solutions. He praised the SEC for being relaxed about disclosures from firms like BlackRock and Fidelity, signaling an important step toward integrating crypto into traditional financial markets.
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