- Bitcoin price has forayed past the $43,000 psychological level amid rising momentum despite BTC being massively overbought.
- The uptick liquidates almost $85 million worth of positions, while open interest rose to a 20-month high at $18.3 billion.
- BlackRock receives $100,000 in seed funding for its spot BTC ETF as investors front-run approvals.
- FOMO continues to drive the crypto market with anticipation for spot ETF launches to bring billions of dollars of new investment to the space.
Bitcoin (BTC) price has revisited levels last seen in April 2022, prior to the collapse of the Terra UST ecosystem. Its foray above the $42,000 psychological level has market watchers enthused, so much so that there are now hyped-up predictions about further gains.
Bitcoin price hits $44,000 as Coinbase CEO contemplates BTC as key to Western civilization
Bitcoin (BTC) price is on a tear, up 175% year to date, with the potential for more gains. It comes barely 24 hours after Coinbase CEO Brian Armstrong said, “One idea I've been contemplating is that BTC may be the key to extending Western civilization.”
One idea I’ve been contemplating is that Bitcoin may be the key to extending western civilization.
— Brian Armstrong ️ (@brian_armstrong) December 3, 2023
The natural trend of whichever country has the reserve currency is to inflate the money supply and increase deficit spending until it loses that advantage. The U.S. is somewhere on…
According to the Coinbase executive, while the US is on a journey to inflating the money supply and increase deficit spending, the people now have an alternative, crypto, posing as an antidote to inflation.
Meanwhile, in an interview with CNBC, one analyst said that “12 to16 months after halving is the best performance of Bitcoin.” However, the analyst observed that things may be different this time as BTC price is higher, with miners reducing their production in the face of smaller block rewards.
The scarcity in this regard entails the “stock to flow ratio” – the amount of Bitcoin mined every year divided by the amount of outstanding tokens.
With no spot BTC exchange-traded fund (ETF) approvals just yet, and given the halving event is still out five to six months, the market is riding on FOMO.
Capital is flowing into the Bitcoin market amid anticipation that spot ETF launches will ultimately bring billions of dollars of new investment to the space. This explains why investors are already providing capital as seed money for the ETF products.
Specifically, a recent report on CoinDesk revealed that BlackRock received $100K seed funding for Its Spot BTC ETF. The capital influx, presented as seed funding, represents an initial funding allowing an ETF product to fund the creation units that underlie the ETF. With this, shares can be offered and traded in the open market.
The show of faith by an unknown investor came after BlackRock made a fresh application with the US Securities & Exchange Commission (SEC).
Bitcoin price uptick liquidates almost $85 million worth of positions
The surge saw up to $69 million worth of short positions liquidated, alongside $15.82 million worth of long positions.
BTC liquidations
Nevertheless, open interest rose to a 20-month high around $18.28 billion, levels last tested in April 2022.
BTC open interest
Bitcoin price is trading for $43,894 as of 19:25 GMT time, following a rejection from the midline of the supply zone at $43,860. A decisive candlestick close above this level would clear the path for a home run to the $50,000 psychological level.
BTC/USDT 1-week chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.