Bitcoin Surges as its Value Skyrockets
Bitcoin (BTC) saw a significant price surge on January 8, surpassing $47,000 for the first time in almost two years. This increase was driven by anticipation surrounding the approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC).
SEC Chairman Gary Gensler’s recent post on X (previously Twitter), warning investors about the risks of crypto investing, was seen by bullish investors as a signal that a Spot ETF approval was imminent. As a result, the BTC price rose by 6% within two hours of Gensler’s post, reaching a daily peak of $44,771.
However, analyzing on-chain data trends reveals that the BTC rally on January 8 was preceded by last-minute purchases from Bitcoin Spot ETF applicants, as they awaited the SEC’s verdict. These applicants, including Blackrock and Grayscale, have maintained a positive stance and have increased their purchases by 1,280 BTC in the last three weeks. As of January 8, their total holdings have reached 703,403 BTC.
These large capital inflows from applicant Bitcoin ETF sponsors have caused major spikes in market demand, leading to a 14% increase in BTC price since December 14. If the SEC delivers a positive verdict in response to the bullish stance of the ETF applicants, Bitcoin price could reach $50,000.
Technical analysis also supports this bullish outlook, as BTC’s 8-day Exponential Moving Average (EMA) has crossed above the 21-day EMA, a pattern known as the Golden Cross. This indicates that investors are now willing to pay more for BTC than in previous weeks.
However, the $50,000 territory could pose a psychological resistance level for Bitcoin price, as investors who purchased BTC around that price range may look to sell and break even. Nevertheless, if an SEC approval verdict leads to increased buying pressure from fund sponsors, the bullish momentum could overcome this selling pressure.
In conclusion, positive developments surrounding the Bitcoin Spot ETFs and technical analysis indicators suggest that Bitcoin price could continue to rise above $47,000 and potentially reach $50,000 in the near future.
