Bitcoin Surges Past $50,000 on Wall Street ETF Approval
The Bitcoin price has surpassed the $50,000 mark following the approval of Wall Street exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on January 11. This surge in price, coupled with increased demand from ETFs, has led to a fully-formed bull run for Bitcoin just months ahead of the halving event.
Wall Street ETFs Drive Bitcoin Demand
According to a recent CNBC interview with Anthony Pompliano, Wall Street ETFs are buying around 12.5 times more Bitcoin per day than the network can produce. This increased demand from institutional investors has contributed to the price appreciation of Bitcoin. Pompliano predicts that the rising demand through ETFs could lead to a significant price increase.
Analytics firm Material Indicators has identified $53 million in Bitcoin buy orders at the $50,000 level on the Binance order book, indicating strong investor interest at this price point. However, they believe a price retest of support levels may be imminent.
Bitcoin Price Rally Faces Potential Correction?
If the Bitcoin price breaks above $50,000, Material Indicators anticipates minimal resistance on the path to $52,000 and $58,000. This could trigger a substantial short squeeze as investors who bet against the asset cover their positions, further driving up the price. However, an inflation report scheduled for Tuesday could potentially trigger a market correction based on its findings.
Bitcoin’s Bullish Momentum Driven by Wall Street ETFs
The approval of Wall Street ETFs and increased institutional demand have fueled Bitcoin’s surge above $50,000. The influx of capital from these ETFs has contributed to its bullish momentum, with expectations of further price appreciation. Market participants eagerly await further developments and potential price movements, although potential corrections may lie ahead.
Hot Take: Bitcoin Continues to Rise Amid Wall Street’s Attention
The Bitcoin price has risen over 3.4% in the past 24 hours, with a seven-day uptrend of 16%. As Wall Street shows increasing interest in Bitcoin, investors are closely watching for further developments and potential corrections in the market.
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