The recent surge in Bitcoin (BTC) price marks a bullish start to the halving year, following a period of struggle in the final weeks of 2023. The cryptocurrency has witnessed a significant gain, over 7%, against the US dollar in just two days, reaching a new 18-month peak of approximately $45,500.
This increase is largely attributed to a growing interest from institutional investors, as evidenced by the decreasing balance of Bitcoin on major exchanges. Additionally, Bitcoin is gaining global attention as a potential safeguard against fiat inflation.
Key Factors Contributing to the Bitcoin price surge :
Anticipation of Spot Bitcoin ETF Approval:
The upcoming January 10, 2024, deadline for the US Securities and Exchange Commission’s (SEC) decision on the Ark 21Shares Bitcoin ETF has fueled optimism among Bitcoin supporters. The SEC is expected to provide feedback following recent amendments to the S-1 filings, with the possibility of approvals on Wednesday and Thursday. Coinbase has also indicated its readiness for a potential spot Bitcoin ETF approval.
Concerns Over an Impending Financial Crisis:
Data from TradingView reveals a dramatic rise in the U.S. 1-month government bond yield, which could indicate investors are seeking more secure options. With Bitcoin outperforming US government bonds, we’ll likely see an increased investment flow into Bitcoin shortly.
Favorable Technical Indicators:
Bitcoin’s recent breakout from a four-week pennant pattern and its ability to maintain a closing price above the $44,500 resistance level, suggests a potential rise towards $51,000 in the coming weeks. Furthermore, the imminent negation of the weekly death cross between the 50 and 200 Moving Averages (MA) adds to the positive outlook.
These factors combine to create a robust case for Bitcoin’s current upward trend, further solidifying its position in the financial market.
Source: https://coinpedia.org/price-analysis/why-is-bitcoin-price-up-today-here-are-the-key-factors/