Key Points
- Bitcoin’s price has surged above $46,000, reaching its highest levels since the launch of spot Bitcoin ETFs in the US last month.
- The surge in Bitcoin’s price has sparked optimism among investors, indicating renewed confidence in the crypto market.
- Notable traders such as Jelle and Laurent Ksiss have offered insights into Bitcoin’s price movement, highlighting the resilience of Bitcoin against aggressive short positions.
- On-chain data suggests that the resurgence in Bitcoin’s price is partially attributed to increased holdings among wallets containing over 1,000 Bitcoin.
- Ethereum has also experienced a surge, reaching a two-week high following amendments to its ETF filings by asset managers Ark Invest and 21Shares.
Bitcoin’s Price Surge
Bitcoin, the leading cryptocurrency, has seen its price rise above the $46,000 mark.
This is the highest it has been since the launch of spot Bitcoin ETFs in the US last month.
At the time of reporting, Bitcoin was trading at $46,302, representing a 4.2% increase over the past 24 hours, according to data from CoinMarketCap.
This recent surge has sparked optimism among investors, indicating a renewed confidence in the crypto market.
Insights into Bitcoin’s Price Movement
Initial concerns were centered on the role of leveraged traders driving the upward momentum, with open interest in Bitcoin increasing by nearly $1 billion in less than 24 hours.
However, despite these apprehensions, the market seems poised to reclaim lost ground, especially since Bitcoin descended from its two-year high of $49,000 on Jan. 11.
Notable traders such as Jelle have provided insights into Bitcoin’s price movement, emphasizing the importance of surpassing the $45,000 threshold.
They also highlighted the resilience of Bitcoin against aggressive short positions.
Analysis of Bitcoin’s Price Movement
Laurent Ksiss, a crypto ETP specialist at CEC Capital, suggests that breaching $45,000 could prompt early investors to consider profit-taking, potentially triggering a reversal towards the $42,000-$40,000 range.
However, LMAX Digital remains optimistic, stating, “Technically speaking, Bitcoin has broken out of a range and could be looking for a push to a fresh yearly high through $50,000.”
Trader Bagsy added to the analysis of Bitcoin’s price movement by highlighting the likelihood of investors who sold the cryptocurrency during the spot Bitcoin ETF launch seeking re-entry into the market.
Meanwhile, BlackRock Inc (NYSE: BLK) and Fidelity Investments continue to attract inflows into their spot Bitcoin ETFs, overshadowing Grayscale’s GBTC, which faces outflows due to its high management fees.
On-Chain Data and Future Expectations
On-chain data from Santiment suggests that the resurgence in Bitcoin’s price is partially attributed to increased holdings among wallets containing over 1,000 Bitcoin, signaling renewed confidence among major holders.
Looking ahead, expectations of a pre-halving rally for Bitcoin persist, although concerns arise from reports of heavy selling by miners to raise capital for expanding their mining operations.
Ethereum’s Price Surge
In parallel, Ethereum has experienced a 3% surge, reaching a two-week high following amendments to spot ETH ETF filings by asset managers Ark Invest and 21Shares.
Currently, ETH is trading at $2,456, up by 1.4% in the past day, with trading volume pegged at $10.4 billion.
Analysts anticipate a potential breakout in altcoins, propelled by ETH’s upward momentum.
Moreover, core ETH developers have initiated the final phase of implementation by launching upgrades on the Holesky testnet, which is expected to enhance network scalability and reduce transaction costs.
