The price of Bitcoin briefly surpassed $44K on Wednesday morning despite an increase in the value of the US dollar.
According to The Times, a number of encouraging economic data points supported the US Dollar Index’s upward trajectory, which reached a two-week high today at roughly 104 index points. Despite this, institutional interest in Bitcoin hasn’t decreased.
The impressive weekly gains of roughly 15% for Bitcoin propelled the total market capitalization of the cryptocurrency industry to surpass $1.6 trillion. Additionally, according to Coinglass data, open interest in CME’s Bitcoin futures rose from $3.66 billion to $5.02 billion in the previous month.
The news that US interest rates will soon drop and that bitcoin ETFs will soon be allowed to trade on US financial markets has cryptocurrency investors feeling extremely optimistic.
Although Bitcoin has already increased by more than 150% this year, it is still more than 40% below its peak from 2021. Many saw the CME’s takeover of Binance as the leading player in Bitcoin futures open interest last month as an indication that conventional financial institutions are growing more interested in cryptocurrency products.
While some analysts think that the approval of spot ETFs will cause Bitcoin prices to soar, not everyone thinks that the current bull run can last.
Within days or weeks of possible approval, some critics, however, foresee an event similar to “selling the news.” Standard Chartered maintains its bullish stance, projecting that Bitcoin will hit $100,000 in value by the end of the following year.
Even with the bullish momentum surrounding Bitcoin, analysts note that retail demand is still largely unchanged. From an on-chain standpoint, the price of Bitcoin might be the catalyst for yet another big rise.
But before the bulls can validate the $50K price levels, the flagship cryptocurrency asset must first overcome the subsequent significant resistance level, which is located around $47K. In terms of market capitalization, Bitcoin has surpassed Facebook’s parent company Meta, taking the ninth-largest spot.
Bitcoin is currently approaching the coveted $1 trillion market valuation, building on its current momentum.
This accomplishment enhances its standing in the international financial scene.
Furthermore, an intriguing trend is shown by the Accumulation Trend Score, a Glassnode-created metric that gauges the relative strength of Bitcoin accumulation based on the size of a company’s balances. The accumulation trend value was 1, indicating strong accumulation across all cohorts, from mid-October to mid-November.
This period of “deep blue accumulation” reflects market participants’ high level of commitment.