The Price of Bitcoin (BTC) Surges Above $47,000 After 19 Months
In a significant development, the price of Bitcoin (BTC) has surged above $47,000 for the first time in 19 months. This comes as all eyes are on the Securities and Exchange Commission (SEC) in Washington D.C., awaiting their decision on approving the spot ETF for Bitcoin. If approved, a stock exchange-listed fund on Bitcoin would bring billions of dollars into the crypto markets and drive up the prices of major cryptocurrencies. Standard Chartered, a London-based bank, has even predicted a Bitcoin price of $200,000 by the end of 2025, supported by money inflows from the spot ETF.
The Rally to $47,000: A Breakthrough Moment
Yesterday, around 8 pm, the price of Bitcoin (BTC) reached $47,250, a level that hadn’t been seen since April 2022. This surge created excitement among crypto investors who are eagerly awaiting the approval of the first spot ETF in the USA. The daily candle on the BTC-USDT chart saw a 6.88% increase and broke local highs. Although the price has slightly dropped to $46,200 before settling at $46,780 at the time of writing this article, it signifies a breakthrough moment for Bitcoin.
Bitcoin Dominance and Market Cap
Bitcoin dominance has returned to 54.5%, consolidating its position as the top cryptocurrency in terms of market capitalization. The total market cap of the crypto sector has reached $1.68 trillion, showing a 120% increase from last year but still 44% below the all-time highs of November 2021.
Volatility and Liquidations in Derivative Markets
Yesterday’s volatility led to a significant number of liquidations in perpetual trading derivative markets. 155 million shorts were liquidated against 120 million longs. However, these numbers are relatively low compared to the bearish movement on January 3rd, which resulted in over half a billion long positions being liquidated. The funding rate has returned to a very low level, indicating a balance between the demand for leverage from traders for long and short positions.
Open Interest and Bearish Divergence
The open interest on Bitcoin has not grown consistently despite the rally above $47,000. It has remained around $11.98 billion, showing a small bearish divergence between the overall open interest and the price of the asset. While the prices have exceeded December levels, the values of the open interest are lower by about $800 million compared to the same period.
Prepare for Volatility: Approving the Spot ETF
The recent rally in Bitcoin’s price is driven by market excitement surrounding the potential approval of a spot ETF. The Securities and Exchange Commission (SEC) is expected to approve the first exchange-traded fund for Bitcoin in the USA, allowing regulated and transparent investment through authorized brokers. Many asset managers have submitted their updates, including information about fees and market makers for potential ETFs. The odds are in favor of approval, with fund managers already releasing fee information and investing in Bitcoin for their potential ETFs.
Influx of Billions into Crypto Markets
If approved, the spot ETF will bring billions of dollars into crypto markets, benefiting both issuing brokers and Bitcoin holders. It will also regulate an industry that was previously associated with illegal activities. Institutional investors will have a secure support base for their positions, further driving up prices. Standard Chartered predicts a Bitcoin price of $200,000 by the end of 2025, reflecting the potential impact of the spot ETF. It’s an exciting time for the crypto market, so buckle up and get ready for what’s to come.
Hot Take: The Bitcoin Surge Continues
The price of Bitcoin (BTC) has finally broken through the $47,000 barrier after 19 months, signaling a significant breakthrough. All eyes are on the SEC’s decision on approving the spot ETF for Bitcoin, which could bring billions of dollars into the crypto markets and drive up prices. Standard Chartered predicts a Bitcoin price of $200,000 by 2025, highlighting the potential impact of the ETF. With market volatility expected in the coming hours, it’s important to approach trading with caution and reduced leverage. Despite the anticipation and positive outlook, it’s crucial to wait for safer times before taking on greater risk. Exciting times lie ahead for Bitcoin and the entire crypto market.
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