"Hmm so will the price of BTC go higher in the near future or is it not time yet?"
Smart money or better known as capital investment from knowledgeable institutional investors are increasingly investing in Bitcoin (BTC) as the Securities and Exchange Commission (SEC) deadline to approve spot BTC ETFs approaches.
Through observation, the smart money index last week which increased at 13,711 from 13,603 has marked a record of net increase positions by fund managers and others.
Please note that the standard BTC futures contract which is widely regarded as a proxy for institutional activity can allow market participants to take exposure to cryptocurrencies through regulated venues without having to own them.
Returning to the original explanation, the smart money index that rose drastically this quarter has happened while there is a narrative of spot ETFs including the expectation of a decrease in interest rates by the Federal Reserve (Fed) in 2024.
The SEC has reportedly set January 10, 2024 as the deadline to approve or reject ETF funds that invest in BTC instead of futures tied to the digital asset.
Following the expected approval of the spot BTC ETF, the price managed to drive almost 60% this quarter but it should be noted that the potential price action "sell the news" could be triggered following the launch.
It is likely that actual demand for spot BTC ETFs will initially fall below market expectations, comments the Singapore-based QCP Capital team, adding that BTC prices may pullback to $36,000 first before continuing higher towards the halving.
As of this writing, BTC price has surged by 2.92% to $43,636 in the past 24 hours with a market cap of $854 billion and a further 2.83% gain over the past week.
