Bitcoin Price Surges to New Yearly High
In a surprising turn of events, just two days after the US proposed a $4.3 billion settlement with Binance, Bitcoin price has defied expectations and reached a new peak for the year. Breaking the $38,000 barrier during the New York trading session on Friday, the cryptocurrency market witnessed a long-awaited surge. This rally happened after Thanksgiving and marks Bitcoin’s highest point since May 2022. Although there has been a slight pullback, Bitcoin still holds a 1.5% gain for the day.
Traders Excited by Bitcoin’s Surge
Friday’s surge in Bitcoin’s price has excited traders and reignited the fear of missing out (FOMO) feeling. This spike in price may allow Bitcoin to reach its next major resistance level at around $42,000 in the coming weeks. Some market watchers, like trader Michael Van Pope, believe that Bitcoin’s next milestone is set at $40,000.
Binance Settlement and Change in Leadership
The US Department of Justice and Binance have reached an agreement that resulted in Changpeng Zhao resigning as CEO and Binance paying a $4.3 billion penalty. Richard Teng has been named as the new CEO of Binance.
Bitcoin Circulating Supply and Market Liquidations
The recent increase in market liquidations has also impacted Bitcoin’s price. Long and short position liquidations have significantly increased across different time frames, totaling $80.29 million in the last 24 hours according to Coinglass statistics. Additionally, 84% of Bitcoin’s circulating supply is currently in profit, which is historically higher than the all-time mean number of 74%.
Potential Approval of Bitcoin ETFs
The potential approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission is adding to the positive outlook. The SEC has a deadline of January 10 to evaluate pending applications for these ETFs. If approved, these ETFs will provide investors with a more cost-effective way to access the Bitcoin market, further fueling the current bullish sentiment.
Hot Take: Bitcoin’s Surprising Surge and its Implications
In a surprising turn of events, Bitcoin has defied expectations by surging to a new yearly high just days after the US proposed a settlement with Binance. This surge has excited traders and rekindled the fear of missing out (FOMO) feeling. Additionally, the agreement between the US Department of Justice and Binance, along with the potential approval of Bitcoin ETFs, are contributing factors to Bitcoin’s positive outlook. With these developments, Bitcoin’s price may continue its upward trajectory and reach new milestones in the coming weeks.
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