- Bitcoin rallied past $39,000 for the first time since 2022.
- The premiere token is inching towards $40,000.
- The current BTC rally could set the tone for the broader digital asset market.
Bitcoin, after a deceptive correction and consolidation phase , is moving with renewed momentum, looking to register a new yearly high. With the stage set for a spot ETF approval, the reigning crypto king appears to gather more steam as we approach January 2024.
There’s no denying that all eyes are on BTC, with investors and experts analyzing every candle and contemplating its potential trajectory. Given its outstanding performance and the strength it has showcased in recent weeks, a sense of euphoria is sweeping through the market.
Bitcoin Moves Towards $40K
Anticipation for Bitcoin spot ETF approvals is at an all-time high as we head into the new year, and this is evident in the asset’s recent rally. After struggling to break past the $38,000 level over the past few weeks, Bitcoin has not only conquered $38,000 but has also surged past $39,000.
Registering a 2% pump in the last 24 hours, BTC currently sits comfortably at $39,600 and is inching towards the $40,000 price level. This marks the first time Bitcoin has breached these levels since April 2022.
While this news spells excitement for Bitcoin enthusiasts, it’s a less joyous development for the bears banking on the token’s demise. According to CoinGlass , over $31 million in short positions were liquidated in BTC-tracked futures.
In tandem with Bitcoin’s remarkable performance, altcoins have also made significant moves alongside the crypto king, with at least 3% gains. Ethereum saw a 4% increase, while Solana experienced an impressive 7% surge.
Considering Bitcoin’s favorable conditions, including hosting the largest crypto inflows in the last two years, achieving the highest percentage of profitable BTC holders , and witnessing unprecedented highs among long-term holders, among other factors, it’s very likely that the token could break $40,000 as well in the following weeks.
On the Flipside
- Bitcoin has gained 16% over the last 30 days.
- The potential for further liquidations remains high, with over $500 million at stake if BTC’s price dips below $37,900.
Why This Matters
Bitcoin’s current rally could set the tone for the broader digital asset market, potentially signaling the onset of a bull run. Its current surge to yearly highs, paired with its robustness, could serve as a compelling influence, encouraging other cryptocurrencies to follow suit.
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