This XRP price Prediction todayweek is extremely important due to the Bitcoin spot ETF approval deadline. This week will end investors’ years of waiting to get a Bitcoin ETF approved by the US Securities and Exchange Commission (SEC). As a result of this crucial event, it could bring in volatility like never before.
Key events for this week
● Bitcoin ETF week: potential ETF approval by Wednesday or Thursday.
● Fed’s inflation data release on Thursday, January 11.
Fed’s inflation data
On Thursday, the Federal Reserve will announce the inflation numbers for December. The headline inflation number was 3.1% for November, and forecasts currently sit at 3.3%, which shows an increase.
If the actual inflation number is equal to or lower than the previous one, it could indicate that the Fed’s decision to keep rates higher for longer. On the other hand, if the inflation rate meets expectations, i.e., it comes in hotter than expected, it would further add to the Fed’s hawkish stance.
In such a case, the risk-on markets are likely to take a minor hit.
Potential Bitcoin spot ETF launch
The crypto market has been awaiting a potential Bitcoin spot ETF approval for years. Investors are excited this week as ETF approval is closer than ever before. With amended 19b-4 filings on January 5, the US SEC could announce its decision soon.
Analysts are expecting this decision to come out late Tuesday or Wednesday as the big day when the SEC finally gives the green light to that long-awaited Bitcoin spot ETF.
Bloomberg’s Katie Greifeld noted that ETF issuers have until Monday at 8 AM ET to submit S-1s and that the SEC plans to vote on the 19b-4s and S-1s in the coming days. Greifeld added,
If both 19b-4s and S-1s are approved, ETFs could start trading as soon as the next day.
If it happens, all bets are off! Bitcoin price could blast off and potentially retest $50,000 or go higher. Additionally, Bitcoin-related altcoins like Bitcoin Cash (BCH), Bitcoin SV (BSV), and Stacks (STX) could also inflate.
Trading ETF news and hedging
Traders are likely to hedge their Bitcoin longs by shorting Ethereum or other altcoins. While some investors chase Bitcoin's skyward trajectory, others might see the ETF news as a signal to "sell the news" and exit their altcoin positions. This could trigger a temporary altcoin dip.
