Bitcoin Price Blasts Past $41,500: Here Are The Reasons
04 Décembre 2023 - 8:00AM
NEWSBTC
In a remarkable surge, Bitcoin’s price has soared past the $41,500
mark, fueled by a confluence of factors ranging from market
anticipation of a Bitcoin spot ETF to broader financial trends.
Here’s a detailed analysis of the key reasons behind this rally: #1
Spot Bitcoin ETF: The Anticipation Game The buzz around the
approval of a spot Bitcoin ETF remains probably the most
significant driver of the recent price surge. Although there hasn’t
been a specific update, the market anticipation is palpable, with a
FOMO effect kicking in. Last week, Bloomberg analyst James Seyffart
suggested that a spot ETF is likely to be approved between January
8 and 10, causing the market to react. Renowned Bitcoin analyst
Willy Woo mirrored the anticipation with this statement, “It’s very
likely we are on the eve of a Bitcoin spot ETF. The first commodity
ETF was SPDR Gold Trust. It provided a simple way for investors to
access gold in their portfolio. When it launched gold went on to an
8 year rally with no single down year between 2005 – 2012.” #2
Gold’s Meteoric Rise And Its Correlation With BTC The unexpected
rise of gold, surging by 3.5% in just 30 minutes to a new all-time
high on a Sunday afternoon, may have also had repercussions for
Bitcoin. This rapid ascent in gold’s value could signal more than
just market fluctuations; it could reflect deeper economic shifts
that have direct implications for Bitcoin. Related Reading: Over
80% Of Bitcoin Holders Now In Profit – Report Crypto Analyst
@TheFlowHorse remarked, “Unless someone is getting carried out
right now after shorting Gold, this is saying something important.
Gold doesn’t just arbitrarily rip on a Sunday like this unless it
means something.” Tom Crown, founder and CEO of Crown Analysis,
added, “Something VERY BIG is coming tomorrow. Gold just BLASTED
past all-time highs on a Sunday night. Someone knows something.” #3
Bitcoin Short Squeeze The liquidation of $65.15 million in Bitcoin
short positions, according Coinglass data, has further propelled
Bitcoin’s price. The short squeeze, combined with strong spot
demand, has been a key factor. Crypto analyst Skew noted, “Another
big short squeeze pushing price above $40K. Slight perp premium on
Binance during the squeeze, indicating spot selling into the short
squeeze.” #4 Whales And Institutional Buyers The current surge in
Bitcoin’s price has been significantly influenced by whales and
institutional buyers. Market analyst Skew pointed out their impact,
stating, “Someone is still aggressively chasing price here. More
importantly if said large market entity actually allows some bids
to get filled or not. IF filled then expected for them to push the
price higher. Clearly $40K is the price for institutional players.”
Related Reading: Bitcoin’s Bullish Surge Ahead: Deribit Predicts
Major Price Leap In Early 2024 Keith Alan, co-founder of Material
Indicators, further emphasized the role of these large holders,
tweeting, “Bitcoin Whales just blasted through $40k.” His statement
underlines the significant influence whales have in driving up
Bitcoin’s price. He added, “Locking in some profit here. $42k is a
high probability, but definitely not guaranteed.” Additionally,
GreeksLive, a trading tools provider, noted the broader market
trend, stating, “Bitcoin broke through $41,000, Ethereum broke
through $2,200… The giant whale once again showed a sense of smell
before the market.” December saw a rise beyond expectations,
bitcoin broke through $41,000, ethereum broke through $2,200, and
continued to rise almost without retracement.The giant whale once
again showed a sense of smell before the market, from last week to
re-add positions in the block call,… https://t.co/EO6MddoNXX
pic.twitter.com/ekD4LiLExs — Greeks.live (@GreeksLive) December 4,
2023 #5 Liquidity: The Underlying Force The surge in Bitcoin’s
price is also significantly influenced by global liquidity
conditions, a factor often overlooked but crucial in
understanding BTC and cryptocurrency market
dynamics. Zerohedge highlighted the scale of this influence in
a post: “In November, central banks added $350BN in liquidity, the
third-largest increase since March.” This massive injection of
liquidity by central banks around the world plays a pivotal role in
asset price movements, including cryptocurrencies like
Bitcoin. David Marlin, CEO of Marlin Capital, pointed out the
significance of this trend in financial conditions, “US Financial
Conditions eased 90 bps in November, the largest monthly easing on
record (dating back to 1982).” Adding to this narrative,
cryptocurrency expert Charles Edwards commented on the historic
nature of this easing, saying, “November saw the largest easing in
over 40 years!” Such a significant easing of financial conditions
suggests a highly conducive environment for investment in assets
like Bitcoin, which are seen as hedges against inflation and
currency devaluation. Arthur Hayes, founder of BitMEX, summed up
the sentiment by stating, “Eye on the prize. RRP balances continue
to fall and BTC continues to pump. Yachtzee!!!” At press time, BTC
traded at $41,505. Featured image from Shutterstock, chart from
TradingView.com
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