Bitcoin (BTC) saw a 1.4% boost in price as it surged to a 21-month high, reaching $45,386 before levelling out at $44,804.
In addition, nearly $115 million worth of Bitcoin short positions were liquidated in the last 24 hours.
A positive signal for risk assets
The January increase in Bitcoin has been seen by renowned market expert Tom Lee as a positive sign for risk assets in general.
According to Lee, the robust performance of Bitcoin may be a sign of a wider market recovery.
The feeling is particularly noteworthy in light of the prominence of cryptocurrencies and their function as leading indicators for other digital assets and maybe even for the larger financial markets.
The significant increase in the value of Bitcoin at the beginning of 2024 stands in stark contrast to the pessimistic prognosis that many market players held at the beginning of the previous year.
Potential Bitcoin spot ETF approval
The impending approval of a Bitcoin Spot Exchange-Traded Fund (ETF) has drawn attention from Matrixport in its most recent report. This development is anticipated to drive up the price of Bitcoin even more, maybe hitting $50,000.
The market is becoming more optimistic due to the expectation that this permission will come through, maybe sooner than most traders anticipate.
This breakthrough might lead to a large flood of investment and is considered as a legitimising element for Bitcoin in institutional portfolios.
Furthermore, the present conditions in the Bitcoin market, such as a reduction in supply owing to a rise in the usage of cold storage and a restricted supply from mining firms, may cause a scarcity, which would raise prices even more.
Predicting an extraordinary surge, Matrixport’s study also takes into account the possible influence of the US election cycle on the price of Bitcoin.
