The post Why Bitcoin (BTC) Price Surge Above $41K? Here Are Top Reasons appeared first on Coinpedia Fintech News
Bitcoin (BTC) has reached a significant milestone by surpassing the Terra Luna UST capitulation level after more than 18 months of fluctuations. This recent surge in the flagship cryptocurrency’s price has been primarily driven by increased demand from institutional investors.
Over the past weekend, Bitcoin experienced a strong breakout, leading to a gain of over 5 percent in the last 24 hours, bringing its trading value to approximately $41,400 during the early London session on Monday. As a result of this rapid ascent, derivatives leverage trading has seen over $72 million in liquidations, with short traders being the most affected.
Factors Behind Bitcoin’s Rally:
1. Institutional Adoption:
The recent bullish trend in Bitcoin can be attributed to its growing adoption within the United States financial system, one of the world’s most sophisticated and developed markets. Notably, MicroStrategy announced its acquisition of over $593 million worth of Bitcoins, a move funded by selling shares in November, with prominent fund manager BlackRock among the notable buyers. This trend is indicative of increasing institutional interest in Bitcoin.
2. US Space Force Major’s Endorsement:
United States Space Force Major Jason Lowery has urged the Defense Department to consider adopting Bitcoin as an ‘offset strategy.’ He believes that Bitcoin, along with its underlying Proof of Work (PoW) technology, could serve as contemporary tools in redefining the landscape of cyber warfare and defense. Such endorsements from influential figures can significantly impact Bitcoin’s perception and acceptance.
3. Spot ETF FOMO:
The anticipation of Bitcoin’s adoption in the form of spot Bitcoin Exchange-Traded Funds (ETFs) within the United States market has played a pivotal role in driving this rally. Analysts are expecting the U.S. Securities and Exchange Commission (SEC) to approve all spot BTC ETFs by January 10, 2024. This has led to a surge in FOMO (Fear of Missing Out) trading activity, as investors aim to capitalize on the potential benefits of these ETFs.
What Next For BTC Price?
Bitcoin’s price is currently approaching a crucial psychological resistance level of approximately $42,000, which many analysts have previously identified as a key target. Meanwhile, the altcoin market, led by Ethereum (ETH), is also experiencing a bullish breakout. Given these dynamics, there is the possibility that Bitcoin’s price may retrace towards the support range between $31,000 and $34,000 either before or after the upcoming halving event.
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