Thirteen companies, including BlackRock (NYSE:BLK), the world’s largest asset management firm, are expected to offer ETFs pending approval. The price of Bitcoin has experienced significant growth throughout most of 2023, driven by optimism surrounding the approval of a spot ETF. Currently, Bitcoin is trading at approximately $43,622.
However, whenever pessimistic reports regarding the approval of a Bitcoin spot ETF surface, the price of Bitcoin has historically declined. The most recent instance occurred on January 3rd when rumors of a Bitcoin spot ETF rejection caused the market to plummet by roughly 8%.
As the crypto market eagerly awaits the decision of the Securities and Exchange Commission (SEC) in the upcoming week, two possible outcomes are anticipated: approval or denial. Regardless of the SEC’s decision on the Bitcoin ETF, another bullish catalyst awaits this year – the Bitcoin halving. According to Ali, this event has historically triggered significant price surges.
Ali supports this claim by sharing a graph that illustrates BTC’s price performance 365 days after previous halving events. The first halving event, which reduced BTC mining rewards to 25 BTC, resulted in a price surge of over 6,000%, as indicated by the graph shared by Ali. Subsequent halving events in 2016 and 2020 saw an average yearly return of over 400% for Bitcoin. However, it is important to note that past performance does not guarantee future results.
Currently, Bitcoin miners receive 6.25 Bitcoins for successfully mining a block. This reward will be halved to 3.125 Bitcoins during the next Bitcoin halving.
Note: This article was originally published on U.Today.