The price of Bitcoin (BTC) soared to a 21-month high, reaching $45,386 and stabilizing at $44,804, an increase of 1.4%.
The price of Bitcoin (BTC) soared to a 21-month high, reaching $45,386 and stabilizing at $44,804, an increase of 1.4%.
Additionally, a massive Bitcoin short liquidation, amount for more than 115 million dollars, took place in the last 24 hours.
A positive sign for risk assets
Renowned market analyst Tom Lee has noted Bitcoin’s rise in January as a promising omen for risk assets in general.
Lee’s outlook suggests that Bitcoin’s strong performance could be an indicator of a broader market recovery.
The sentiment is especially significant given the influence of cryptocurrency and its role as a bellwether for other digital assets and possibly even financial markets in general.
This rally in Bitcoin’s value in early 2024 stands in stark contrast to the bearish outlook that prevailed among many market participants early last year.
Bitcoin Spot ETF Possible Approval
In its latest note, Matrixport has commented on the imminent approval of a Bitcoin spot exchange-traded fund (ETF), which is expected to boost the price of Bitcoin further, potentially reaching the $50,000 mark.
The anticipation of this approval, potentially sooner than most traders expect, is creating bullish sentiment in the market.
This development is seen as a legitimizing factor for Bitcoin in institutional portfolios and could trigger a significant influx of investments.
Additionally, current dynamics in the Bitcoin market, including a decrease in available supply due to increased use of cold storage and limited supply from mining companies, could lead to a supply shortage, driving prices up even further. .
Matrixport’s analysis also relates the potential impact of the US election cycle on the price of Bitcoin, predicting an impressive rally.