In parallel, Ethereum (ETH) has experienced a 3% surge, reaching a two-week high following amendments to spot ETH ETF filings by asset managers Ark Invest and 21Shares.
Bitcoin (BTC), the world’s leading cryptocurrency, has surged above the $46,000 price mark, reaching its highest levels since the launch of spot Bitcoin Exchange-Traded Funds (ETFs) in the US last month.
The Surge in Bitcoin Price
At press time, Bitcoin is trading at $46,302, demonstrating an increase of 4.2% in the past 24 hours, according to data from CoinMarketCap. The recent surge has spurred optimism among investors, indicating renewed confidence in the crypto market.
Concerns initially centered on leveraged traders’ role in driving the upward momentum, with open interest in Bitcoin increasing by nearly $1 billion in less than 24 hours. However, despite these apprehensions, the market appears poised to reclaim lost ground, particularly since Bitcoin descended from its two-year high of $49,000 on Jan. 11.
Renowned traders such as Jelle have offered insights into Bitcoin’s price movement, emphasizing the importance of surpassing the $45,000 threshold and highlighting the resilience of Bitcoin against aggressive short positions.
Laurent Ksiss, a crypto ETP specialist at CEC Capital, suggests that breaching $45,000 could prompt early investors to contemplate profit-taking, potentially triggering a reversal towards the $42,000-$40,000 range. However, LMAX Digital remains optimistic, stating, “Technically speaking, Bitcoin has broken out of a range and could be looking for a push to a fresh yearly high through $50,000.”
Adding to the analysis of Bitcoin’s price movement, Trader Bagsy highlighted the likelihood of investors who sold the cryptocurrency during the spot Bitcoin ETF launch seeking re-entry into the market. Meanwhile, BlackRock Inc (NYSE: BLK) and Fidelity Investments continue to attract inflows into their spot Bitcoin ETFs, overshadowing Grayscale’s GBTC, which faces outflows due to its high management fees.
Furthermore, on-chain data from Santiment suggests that the resurgence in Bitcoin’s price is partially attributed to increased holdings among wallets containing over 1,000 Bitcoin, signaling renewed confidence among major holders.
🐳📈 #Bitcoin is back above $44.5K for the first time since the '#ETF hangover' retrace began back on Jan. 12. This bounce is partially attributed to the rise in 1K+ $BTC wallet holdings. Their collective holdings are at their highest level in 14+ months. https://t.co/mxCoXJbHcW pic.twitter.com/FjZdmPeMvj
— Santiment (@santimentfeed) February 8, 2024
Looking ahead, expectations of a pre-halving rally for Bitcoin persist, although concerns arise from reports of heavy selling by miners to raise capital for expanding their mining operations. This move to bolster their position is considered pivotal considering the forthcoming halving event sometime in April. Nonetheless, the overall sentiment remains bullish, with stakeholders eagerly awaiting further developments in both Bitcoin and the broader crypto space.
Ethereum Records Surge
In parallel, Ethereum (ETH) has experienced a 3% surge, reaching a two-week high following amendments to spot ETH ETF filings by asset managers Ark Invest and 21Shares.
Currently, ETH is trading at $2,456, up by 1.4% in the past day, with trading volume pegged at $10.4 billion. Analysts anticipate a potential breakout in altcoins, propelled by ETH’s upward momentum.
Moreover, core ETH developers have initiated the final phase of implementation by launching upgrades on the Holesky testnet, which is expected to enhance network scalability and reduce transaction costs. These developments bode well for Ethereum’s adoption and growth prospects, with the Dencun Upgrades mainnet launch now slated for March 13.
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