Crypto Market Forecast for November 2023

In October, Bitcoin surged above $35,000, marking its first climb since May 2022. However, by month-end, the cryptocurrency retreated below this significant threshold, setting the stage for a potentially eventful November in the crypto space.

 

Throughout 2023, cryptocurrency prices have risen in tandem with an optimistic U.S. economic outlook. Investor interest in Bitcoin has intensified amid expectations that the U.S. Securities and Exchange Commission (SEC) will greenlight the inaugural Bitcoin spot exchange-traded fund (ETF) for trading on a major U.S. exchange.

The bullish activity in late October, particularly in Bitcoin and Ethereum, stemmed from hopes that asset management giants like Fidelity Investments and BlackRock would be among the first to gain SEC approval for Bitcoin spot ETFs. This not only bolsters the credibility of cryptocurrencies but also opens doors for broader adoption.

In the same month, Grayscale Investments secured a significant legal victory over the SEC in an appeals court, advancing its quest to transform the popular Grayscale Bitcoin Trust (GBTC) into a spot ETF.

Speculation around the launch of a Bitcoin spot ETF has been gaining momentum for years. Over the past three months, the push for the first crypto spot ETF has intensified. Despite the SEC's past rejections, particularly due to concerns about investor safety and potential market manipulation, analysts at Bloomberg Intelligence now estimate a 90% chance of SEC approval for a spot Bitcoin ETF by January 10, 2024.

The Depository Trust and Clearing Corporation's listing of BlackRock's proposed iShares Bitcoin Trust (IBTC) on its ETF roster on October 23 fueled optimism about imminent SEC approval. Other major Wall Street firms, including VanEck, WisdomTree, Fidelity, Bitwise, and Invesco, are also awaiting SEC rulings on their Bitcoin spot ETF proposals.

On October 19, Grayscale took a step toward ETF conversion by filing a form S-3 with the SEC to register its Bitcoin trust as an investment product. This move followed the SEC's decision not to appeal the August ruling by the DC Circuit Court of Appeals, which overturned the SEC's rejection of Grayscale's proposal to convert GBTC into a spot ETF.