Bitcoin Surpasses $40,000 and Shows Strong Momentum
Bitcoin has surpassed the $40,000 threshold, signaling a strong upward momentum and providing an early Christmas for its speculative enthusiasts. This rally has helped the market recover from the challenges of the previous year’s crypto winter. However, it’s important to note that Bitcoin started the year at a modest level of $16,500.
$40k Starting Point for Bitcoin Bull Market?
According to Ryan Lee, Chief Analyst of Bitget Research, the anticipation of interest rate cuts by the Federal Reserve has driven up commodity prices at a macro level. Gold has reached historic highs, and Bitcoin has rebounded by nearly $15,000 in the past month. Experts believe that Bitcoin is now sitting at a crucial level that could serve as the starting point for the upcoming bull market.
“In the crypto market, Bitcoin has surpassed $40,000 without encountering significant resistance. Within 24 hours, short positions on Bitcoin contracts worth $54 million were liquidated, significantly weakening the bearish forces. The market may undergo an overall accelerated upward revision.”
“Earned” Growth in Bitcoin’s Current Rally
Elitsa Taskova, Chief Product Officer of Nexo, highlights the significant changes in Bitcoin’s current surge past $40,000 compared to previous rallies. This growth feels more “earned” and has been a steady ascent. The consensus is that holding at $40,000 is no surprise, and there’s optimism for further increases following consolidation around the $41-43K range. Taskova also notes that both Bitcoin and gold are reaching yearly highs, suggesting they serve as hedges or uncorrelated assets.
State of Market Post Bitcoin Spot ETF Approval in US
The crypto market is at a pivotal moment with the potential approval of a spot Bitcoin exchange-traded fund (ETF) on the horizon. The recent rally is closely tied to expectations regarding the Spot Bitcoin ETF. Davinder Singh, Chief Technology Officer at RocketX Exchange, predicts a slight dip post-approval, setting the stage for a potential climb to new peaks.
“Bitcoin’s price surge is intricately linked to the outlook for the Spot Bitcoin ETF. With a prevailing belief that it might secure approval in the initial stages of Q1, an air of optimism envelops the market, fueling the current upward trajectory. Following the anticipated approval, a slight dip is foreseen, setting the stage for a potential climb to new peaks.”
Hot Take: Bitcoin’s Bullish Momentum Continues
Bitcoin’s recent rally past $40,000 and its strong upward momentum indicate that the premier crypto asset is on track for a bull market. Experts believe that this surge is driven by factors such as anticipation of interest rate cuts and positive news about commodity prices. The growth in Bitcoin’s current rally feels more “earned” and steady compared to previous cycles. With expectations of a potential spot Bitcoin ETF approval in the US, there is optimism for further increases in Bitcoin’s price. Overall, Bitcoin seems well-positioned for sustained growth in 2024 and beyond.
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