Bitcoin Signals Start of New Bullish Trend
Bitcoin has rebounded to $42.6k, indicating the beginning of a new bullish trend after a recent sell-off caused by short-term holders. These short-term holders are part of the more speculative segment of Bitcoin investors. Ether has also experienced an upswing, surpassing the $2,270 mark.
Massive Inflows into Bitcoin and Ethereum
An on-chain analyst noted that over $19.7 billion flowed into Bitcoin and Ethereum on December 14th. This level of capital inflow is reminiscent of the pattern observed before Bitcoin surged from $18,000 to $65,000 in 2020. If historical patterns repeat, Bitcoin could potentially reach new highs.
BTC Options Dominate Amidst Fresh Rally
During the recent rally, BTC options accounted for 50% of all options volume. Block trades actively purchased DEC29 calls, with 50% of these trades being bullish bets on the market at year-end.
Bullish Outlook for Bitcoin
Market commentators have predicted that Bitcoin will surpass the $42,000-$45,000 range by the end of the upcoming week and face no significant hurdles until reaching $63,000. Despite a recent sell-off event triggered by profit-taking from short-term holders, the shrinking BTC supply on exchanges indicates that investors are holding onto their assets rather than selling.
Hot Take: Bitcoin’s Future Potential
Former BitMEX CEO Arthur Hayes reiterated his forecast that Bitcoin will eventually reach $1 million. He attributes this prediction to broader economic shifts that are eroding the value of national currencies.
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