Bitcoin surges back to $45k fueled by heightened trading activity and optimistic market outlook
Bitcoin experienced a rapid surge, reaching $45,435, resulting in a 5.3% increase within a day and a 6.3% rise over the course of the week, according to data from CoinMarketCap.
This sudden upward movement has propelled the cryptocurrency beyond the $45,000 threshold, a level that was last seen following the U.S. Securities and Exchange Commission’s groundbreaking approval of spot Bitcoin ETFs.
The excitement surrounding Bitcoin’s surge in price is further intensified by the substantial trading volume witnessed in spot Bitcoin ETFs, which surpassed $1 billion yesterday. Notably, BlackRock and Fidelity are at the forefront of this trend, as reported by Bloomberg’s James Seyffart.
Alex Kuptsikevich, a senior analyst at FxPro, commented on the situation, stating, “Bitcoin has surpassed its 50-day moving average, confirming a bullish medium-term trend and alleviating concerns of a more significant correction.” He also emphasized the significance of weekly closing prices as indicators of market sentiment, highlighting that Bitcoin and the broader crypto market have emerged stronger after a period of consolidation, with the potential to reach new all-time highs.
The market’s optimism is also influenced by expectations surrounding the Federal Reserve’s interest rate policies. Recent statements from Boston Fed President Susan Collins and Cleveland Fed President Loretta Mester suggest the possibility of future interest rate cuts, contributing to the volatility and attractiveness of cryptocurrencies like Bitcoin.
Read more: Institutional adoption of cryptocurrency is on the rise. What factors can further accelerate this trend?
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