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Why Bitcoin is Up Today? What Next For BTC Price?

Dec 4, 2023

Bitcoin's Rally Soars as Spot ETF

The post Why Bitcoin is Up Today? What Next For BTC Price? appeared first on Coinpedia Fintech News

In recent times, the crypto sphere faced a slew of troubles, including collapses, legal battles, and major figures like FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao facing criminal charges. With Zhao stepping down and a hefty settlement with the U.S. DOJ, some view these cases as pivotal in finally resolving the market’s lingering issues.

Despite this, the price of Bitcoin soared above $40,000, marking a significant rally amid hopes of U.S. interest rate cuts and expectations for the approval of U.S.-stockmarket traded Bitcoin funds. This surge in value coincides with key economic events in the U.S. this week. 

Key Economic Events 

The Kobeissi Letter, a macroeconomics publication, has compiled a list of key economic events for the United States starting on December 4. On Tuesday, the Institute of Supply Management’s Non-Manufacturing Purchasing Managers’ Index will provide a complete perspective of the sector’s economic situation. Thursday’s Initial Jobless Claims: Expect a modest uptick over last month. Finally, Friday’s Consumer Sentiment Data & November Jobs Report: Consumer sentiment is expected to rise slightly, suggesting optimism about finances and the economy. Whereas, critical insights will come from the November jobs data.

Can BTC Topple Above $100K?

The market’s anticipation of a spot Bitcoin ETF approval on January 5th – 10th is driving the crypto market’s momentum, leading to a total market capitalization rise to $1.59 trillion, nearing its peak of $3.08 trillion last November. Bitcoin’s recent surge to $40,800, the highest since April 2022, signifies its 9% increase over the past week and steady growth since September. 

Some bold predictions for Bitcoin in 2024 are also circulating. Standard Chartered forecasts a potential rise to $100,000 by then, driven by ETF approvals. Bitcoin has more than doubled in value this year, with most increases coming in recent weeks as speculators speculated about a U.S. ETF that tracks the cryptocurrency’s price. Meanwhile, Matrixport anticipates a climb to $63,140 by April 2024 and a whopping $125,000 by the year’s end. These projections hint at significant growth, potentially marking a 160% to 225% surge from current prices. 

Impact of Lower Interest Rates on Bitcoin

On the positive side, Fed Chair Powell’s comments hint at a softer approach to rate hikes, the market expects the Fed to maintain rates in December and possibly cut them by March 2024. Despite concerns over high inflation and a robust labor market, the potential for lower interest rates positively influences Bitcoin’s prospects. This contrasts with its previous record high of nearly $69,000 in 2021, which declined amid rising interest rates, industry turmoil, and regulatory issues, including Binance’s recent money laundering allegations and a $4 billion fine.

The recent developments in crypto space and Bitcoin’s rise above $40,000 give the crypto community hope for more growth. Can we see a new ATH Soon? 


#News #Bitcoin #PriceAnalysis
[Source: Coinpedia]

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