Bitcoin price could climb to $45,000, alongside updates in Spot Bitcoin ETF filing by BlackRock
- Bitcoin price resumed its climb towards a likely $45,000 target, amidst positive developments in Spot Bitcoin ETF applications.
- BlackRock filed an S-1 amendment, a registration statement that the SEC requires issuers to file ahead of new securities offers.
- Bitcoin traders showed signs of fear according to on-chain analysts, aiding BTC price recovery early in the week.
Bitcoin price rally to $45,000 is likely with the recent updates in Spot Bitcoin ETF applications. The anticipation surrounding Spot Bitcoin ETF has increased as BlackRock amended its application, filing a registration statement ahead of the new product offering.
BTC price is $42,965 on Binance, as Bitcoin recovers from a slump early on Tuesday.
Daily Digest Market Movers: Bitcoin price rebounds after smaller wallets distribute their holdings to large wallets
- On-chain analysts at Santiment note that crypto market prices rally in response to fearful traders or fatigue among market participants. Analysts observed fatigue kicking in on Friday, with a negative tone towards BTC. This was followed by a rebound in Bitcoin prices and BTC climbed towards $43,000, early on Tuesday.
- Bitcoin rebound amidst market fatigue. Source: Santiment
- Analysts noted that BTC changed hands from smaller wallets to larger wallets, driving the Bitcoin price increase and pushing the asset to $43,200.
- Bloomberg ETF analyst James Seyffart updated crypto market participants on the S-1 amendment filed by BlackRock for their spot Bitcoin ETF.
Update: S-1 amendment just dropped from @BlackRock for their spot #Bitcoin ETF pic.twitter.com/JxllvsRfab
— James Seyffart (@JSeyff) December 18, 2023
- Form S-1 is a registration statement required by the US Securities and Exchange Commission (SEC) for filing an order to publicly offer new securities products.
- Analyst Seyffart notes that BlackRock caved in to the US SEC’s demand for cash creation ETF product, rather than in-kind creations and redemptions.
Technical Analysis: Bitcoin price eyes $45,000 target
Bitcoin price rallied to $43,500, the highest level seen on Tuesday, post its weekend recovery. The asset is likely to climb towards the Fair Value Gap between $44,730 and $45,369. Once the gap is filled, Bitcoin price is expected to witness another pullback or correction in its price. $45,000 is a key psychological level for Bitcoin price.
BTC price is above its three long-term Exponential Moving Averages (EMAs) at 10,50 and 200-days.
BTC/USDT 1-day chart
A daily candlestick close below $42,331 could invalidate the bullish thesis for Bitcoin price.
Cryptocurrency prices FAQs
How do new token launches or listings affect cryptocurrency prices?
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
How do hacks affect cryptocurrency prices?
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
How do macroeconomic releases and events affect cryptocurrency prices?
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
How do major crypto upgrades like halvings, hard forks affect cryptocurrency prices?
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
