Bitcoin supporters have reason to rejoice as the alpha coin has gracefully reached a promising level. assessment of nearly $38,000 Wednesday evening, retaking its throne with the highest value recorded in the last 12 months.
Bitcoin rebounded strongly from the previous day’s beating, reaching near a new 18-month high, just short of the much-vaunted price target.
A cut in federal interest rates, hopes that Sam Bankman-Fried’s apology for his actions at FTX will be a fresh start for the struggling sector, and the SEC’s approval of an exchange-traded fund ( ETF) Bitcoin are some of the things that have caused prices to rise.
ETFs are a type of investment product that tracks an index or commodity. Bitcoin ETFs would allow investors to profit from the growing value of Bitcoin without actually owning any.
ByteTree pointed out that Bitcoin was doing much better than standard assets like gold and US stock indices, which also rose.
Reports indicate a move could generate an additional $600 billion in demand. According to CryptoQuant experts, the approval of an ETF would lead to an increase in Bitcoin’s market capitalization by $1 trillion.
Bitcoin up 117% this year
As it evolved, the value of Bitcoin saw a significant increase of over 117% during this year. Anticipation of a halving in 2024 also helped increase market optimism.
The price of Bitcoin (BTC) is rising as people try to make up for all the ground lost during the recent crash, which wiped out up to $90 million in open interest.
At $34,572, the 25-day exponential moving average (EMA) appears. BTC is attempting to move back above the important support level at $36,788.
BTCUSD trading at $37,379 on the daily chart: TradingView.com
Despite a series of economic challenges, BTC continues to advance, recording a 126% gain year-to-date and options market data points to speculators. heading towards the $40,000 level.
With the recent price increase, the Crypto Fear and Greed Index has moved squarely into the “Greed” category, indicating that market sentiment has improved.
In an environment characterized by an optimistic and positive outlook, Bitcoin’s momentum could be amplified and reach the psychological turning point of $40,000.
This would represent a strong increase of 10% compared to the current situation. It is getting stronger because the Relative Strength Index (RSI) is tilting towards the north, which shows a rise in strength.
Is the bear market behind us?
According to Zach Pandl, managing director of research at crypto fund provider Grayscale Investments LLC:
“The recovery in cryptocurrency valuations may continue if real interest rates peak and we continue to see progress toward timely approval of ETFs in the U.S. market.”
“Bitcoin is now going mainstream and the bear is behind us,” Charlie Morris, founder of investment advisory firm ByteTree, said in a market report released Wednesday.
“The good times are here,” he said.
Meanwhile, institutional investors have already started deploying capital towards Bitcoin and cryptocurrencies, while retail investors could expect additional liquidity from approved ETFs.
Over the past year, institutional investors have invested more than $1 billion in cryptocurrency, according to data from CoinShares (chart above).
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