Secrets Behind BTC Surging
In 2023, BTC witnesses an impressive 161% surge, securely closing above the $40,000 psychological barrier.
Recently, Bitcoin spiked above $45,000, reaching heights not seen since April 2022.
Two pivotal factors contributing to this surge are the fourth halving event and the pending decision by the US Securities and Exchange Commission (SEC) regarding spot BTC ETFs.
Embrace the Speculation, Capitalize on the Announcement
Cryptocurrency markets grapple with a “sell the news” sentiment as Bitcoin and Ethereum face resistance. Bitcoin briefly surges past $45,000, only to plummet, wiping out $550 million in long positions and $50 million in short positions.
Market upheaval follows a Matrixport blog hinting at potential SEC delays in ETF approvals. The drop coincides with a celebratory video from Galaxy and Invesco, marking Bitcoin’s 15th birthday on January 3.
A previous 8.51% decline from $45,300 to $41,400 triggers the liquidation of around $600 million in holdings. Concurrently, total open interest sharply falls from $18.66 billion to $17.72 billion.
The collective crypto market cap shrinks from $1.82 trillion to $1.72 trillion, witnessing a loss of over $100 billion. On December 2nd, Bitcoin peaked at $45,900, only to crash by 8% in two hours, hitting a low near $41,500. Ethereum also experiences a 6% plunge.
Among the top 100 digital assets, over half see double-digit losses for the day. Uncertainty grows as a crucial approval criterion remains unmet, potentially prolonging discussions until Q2 2024.
Coingabbar predicts a possible 20% Bitcoin price drop, ranging from $36,000 to $38,000, in case of ETF rejection, triggered by liquidation linked to ETF approval expectations.
What’s the Anticipated Future of BITCOIN
Recent meetings between the SEC and stock exchanges regarding Spot Bitcoin ETFs have injected uncertainty into the market. The potential results of these discussions could shape Bitcoin’s inclusion in mainstream investment portfolios.
Even as the market bounces back, investors are keenly anticipating the SEC’s position on spot Bitcoin ETFs and their potential repercussions in the broader financial landscape.
Currently trading 2-5% above the recent low, the market has shown resilience after absorbing the effects of panic selling.
Optimism among investors is elevated, driven by the anticipation of a favorable ETF decision, fostering hope and confidence in the market.
