The price of bitcoin has risen beyond $39,000 and is now at its highest point since April 2022.
The surge in price that has occurred recently, with Bitcoin reaching its highest point on the Bitstamp platform on December 2 at $39,725 is mostly because to the growing enthusiasm over possible spot Bitcoin ETFs.
Since December began, there has been a noticeable 4.6% gain in the value of the digital currency. This demonstrates the cryptocurrency market’s strong upward direction.
ETF hype fuels Bitcoin’s ascent
The possibility of spot Bitcoin ETFs, an investment instrument that might significantly increase Bitcoin’s accessibility and appeal to a wider investor base, has the cryptocurrency industry excited.
The price movement of Bitcoin has been largely driven by this anticipation. According to U.Today, the U.S. SEC has officially set a window of approval between January 5 and January 10 for a spot Bitcoin ETF.
If authorised, the ETFs would provide investors exposure to Bitcoin without the hassles of direct ownership, possibly bringing in a new class of institutional and individual investors.
Strong volatility
The price of Bitcoin has recently surged, but not without some market volatility. There have been a lot of liquidations in the cryptocurrency trading industry, according to data.
Total liquidations in the past 24 hours have been $143.82 million, with short positions accounting for $111.87 million of this volatility.
The largest volume of liquidations was $4.48 million at Binance, a significant participant in the cryptocurrency exchange market, with shorts accounting for more than 60% of this amount.
