Bitcoin Bears Liquidated as BTC Price Blasts into a New Bull Market - Blockonomi
by Oliver Dale · BlockonomiBitcoin’s price has seen monumental growth in 2023, surging over 140% since January 1st. This week, Bitcoin broke through the key threshold of $41,000 for the first time in 19 months.
The recent price boom reflects building optimism that a spot bitcoin exchange-traded fund (ETF) could soon be approved by the Securities and Exchange Commission.
Keypoints
- Bitcoin price breaks $41,000 for the first time in 19 months
- Bitcoin has risen over 140% since the beginning of 2023
- Projections estimate Bitcoin could reach over $60,000 by April 2023 and as high as $125,000 by end of 2024
- Anticipation building for potential spot Bitcoin ETF approval in US by SEC in January
- Over $200 million in crypto futures shorts liquidated over the weekend as prices rose
An ETF would allow mainstream investors easier access to bitcoin through traditional brokerage accounts. Analysts see a high likelihood of multiple spot bitcoin ETFs being approved simultaneously by January 10th. The anticipation has fueled tremendous speculation and investment into bitcoin, evidenced by the rapid price gains.
“It’s very likely we are on the eve of a Bitcoin spot ETF,” said Bitcoin analyst Willy Woo. ETFs have paved the way for surging prices in commodities like gold. Following the launch of the gold SPDR ETF in 2004, gold prices rallied for 8 straight years. Bitcoin could be poised for a similar sustained bull run if a spot ETF is approved.
Projections suggest the price outlook remains extremely favorable for Bitcoin, thanks to upcoming “halving” events which cut mining rewards in half about every four years. Based on past trends of post-halving rallies, Bitcoin could reach over $60,000 by April 2023 and as much as $125,000 by end of 2024.
The recent liquidation of over $200 million worth of crypto futures shorts over the weekend signals traders rapidly exiting bearish bets and flipping to bullish sentiment. Open interest has also spiked on derivatives exchanges like BitMEX, indicating major players are opening huge speculative long positions.
The confluence of spot ETF anticipation, looming halvings, parabolic price action, and flipped market positioning all point to Bitcoin’s next bull cycle being underway. While risks remain, Bitcoin finally appears to be gaining mainstream momentum. If spot ETFs are indeed just weeks away from approval, Bitcoin still seems vastly undervalued at the current price of $41,000.