Bitcoin price targets $48,000 and reaches new highs
Bitcoin price targets $48,000 and reaches new highs
The price of Bitcoin has reached its highest level since April 2022 and appears to be targeting the $48,000 level as excitement returned to the markets in anticipation of the first spot Bitcoin exchange-traded fund (ETF) to be approved in the U.S. soon.
Demand for Bitcoin increased amid rumors that the U.S. Securities and Exchange Commission (SEC) could approve Bitcoin ETFs as early as Tuesday, Jan. 2, for companies that filed amended applications by the regulator's deadline, although official approval of applications is scheduled to begin on Jan. 4.
The turmoil contributed to the BTC/USD exchange rate on Bitstamp reaching $45,922, Cointelegraph reported.
Popular trader Crypto Tony, in a post on X (Twitter), confirmed the cryptocurrency's meteoric rise in anticipation of the spot Bitcoin ETF approvals.
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"Bitcoin is trading as if the ETF is about to be approved," said analyst and podcast host Scott Melker.
At the same time, an analyst who goes by the nickname @52Skew noted on his X page after examining changes in the order book that some selling had taken place, but the volume remained relatively subdued.
The Stockmoney Lizards trading team cited a short-term BTC growth target of $48,000 in its latest cryptocurrency market forecast, writing, "It is likely that BTC will continue to pump and break the upper trendline until an ETF decision is made."
BTC is currently trading at $45,667, having gained 2.9% in 24 hours and 6.73% in 7 days.
According to CoinGlass, only $38 million in BTC shorts have been liquidated, with cross-crypto short trades totaling $62 million.
Skew points out that perpetual swap traders were prepared for a $45,000 spike, so only the "early" shorts were caught off guard.
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"Clearly, the perp market as a whole has been under-exposed to the current spot-driven move, which means there will be volatility feedback when tracking the spot price in perps, especially around the $45,000 area," he commented.
Read also: Analysts predict continuation of Bitcoin bull cycle
