Bitcoin (BTC) traded above USD 40,000 in the early morning for the first time since April 2022. There are reasons for the dream start to the Christmas season. Is Bitcoin’s price curve now entering a sustained spurt?
Anyone looking at the Bitcoin (BTC) price curve this Monday morning might be amazed. During the night, the psychologically important USD 40,000 mark was surpassed almost in passing and Bitcoin is already temporarily testing the next hurdle at USD 42,000. BTC is thus trading at levels last seen in April 2022, before the crash of the Terra ecosystem caused a lasting deterioration in sentiment on the crypto markets. Bitcoin, the mother of all cryptocurrencies, therefore seems to be regaining its former strength and analysts have arguments for this:
– Possible Bitcoin ETFs have been moving the markets since October. Bloomberg experts, for example, predict a 90 percent probability of approval by the US Securities and Exchange Commission (SEC) by January 10. Optimists are already pricing in Bitcoin ETFs and the resulting expected inflow of capital into BTC.
– A data analysis by Coinshare shows that more capital has been pumped into the crypto markets over the past ten weeks, with Bitcoin receiving the lion’s share. It is also striking that institutional investors are rediscovering Bitcoin.
– The continuing upward trend in Bitcoin is forcing speculators who have bet on falling prices to liquidate their positions. This is known as a “short squeeze” and lays the foundation for stable price targets.
– The Bitcoin Halving scheduled for April 2024 is also creating a positive mood based on historical experience. In addition, details such as the election of Bitcoin-friendly Javier Milei as President of Argentina indicate the increasing importance of BTC.
In the wake of Bitcoin, Ethereum (ETH) also made a leap forward and is currently trading at over USD 2,200.
Conclusion: Bitcoin is strong – will the rally continue?
Cautionary voices remind us of the high volatility in the price curves of Bitcoin and the like, which can also have a negative impact. However, if you take prominent analyst Markus Thielen at his word, who predicted a “Christmas rally” for Bitcoin at the beginning of November, there is still room for improvement. According to Thielen’s calculations, Bitcoin gains an average of 23% every year in November and December. If he is right, the USD 45,000 mark would still be within reach for Bitcoin by the end of the year. At the moment, there is a bullish mood on the crypto markets and Bitcoin is the driving force.
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