In a surprising turn of events on Wednesday morning, the price of Bitcoin briefly surpassed $44,000, defying the strengthening U.S. dollar. The U.S. Dollar Index continued its upward trajectory, reaching a two-week peak at around 104 index points. This surge was fueled by positive economic indicators; however, it did not deter institutional interest in Bitcoin.
The overall market capitalization of the cryptocurrency market soared beyond $1.6 trillion, driven by impressive weekly gains of approximately 15% for Bitcoin. According to Coinglass data, open interest in CME’s Bitcoin futures also witnessed a significant increase over the past month, rising from $3.66 billion to $5.02 billion.
Crypto investors are currently buoyed by optimism surrounding potential U.S. interest rate decreases and the imminent approval of Bitcoin ETFs for trading on U.S. financial markets.
Despite Bitcoin’s remarkable 150% surge this year, it still lags more than 40% behind its all-time high from 2021. Notably, the CME recently surpassed Binance in Bitcoin futures open interest, suggesting growing interest from traditional financial institutions in crypto products.
While some analysts anticipate that the approval of spot ETFs could trigger a rapid increase in Bitcoin prices, not everyone is convinced that the current bullish trend will persist. Skeptics warn of a potential “selling the news” event within days or weeks of approval. Nonetheless, the overall sentiment remains bullish, with Standard Chartered predicting Bitcoin’s price to reach $100,000 next year.
Despite the bullish momentum, analysts observe that retail demand for Bitcoin remains relatively stagnant. From an on-chain perspective, Bitcoin’s price may be the driving force for another significant rally. To confirm $50,000 price levels, the flagship crypto asset must overcome the next key resistance level near $47,000.
In a notable development, Bitcoin has surpassed Meta, the parent company of Facebook, in terms of market capitalization, securing its position as the ninth-largest asset. Building on this momentum, Bitcoin is now poised to achieve the coveted $1 trillion market valuation, further solidifying its role in the global financial landscape.
Additionally, the Accumulation Trend Score, a metric created by Glassnode to measure the relative strength of Bitcoin accumulation based on the size of a company’s balances, reveals an intriguing trend. From mid-October to mid-November, the accumulation trend value remained at 1, indicating robust accumulation across all cohorts. This period, characterized by “deep blue accumulation,” underscores the high level of commitment among market participants. Infostride News continues to monitor these developments in the ever-evolving landscape of cryptocurrency and financial markets.
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