While the price of Bitcoin once again rises above $43,000, there is also activity in altcoins. There are several reasons for the positive turn in the markets. A few hours after the Fed’s decision on Wednesday, it was predicted that negativity could persist, and it happened as expected. Now, we are moving on to the second phase.
The fluctuation in Bitcoin’s price may continue until the Asian markets open. There is a daily close in about an hour, and closing above $43,000 is significant. However, our current topic is more about the changing market perception than short-term movements. Peaks are now turning into temporary resting areas beyond profit realization zones. BTC has completed its last correction and is now focusing on its next target.
On December 11th, the Bitcoin trading volume in exchanges reached the highest level of the last six months. Although trading activity in BTC is not at the desired level, the revival in demand after the withdrawal of major market players is a significant turning point and this is positive.
Macroeconomic fluctuations have calmed down for now, and Powell has also indicated that we are approaching interest rate cuts. BTC, which has gained 153.5% since the beginning of the year, has also positively priced the recent Binance agreement. Experts say that this agreement could pave the way for the approval of a spot Bitcoin ETF and they are hopeful for January 10th. The big day is coming in about 26 days.
Analysts at CryptoQuant have said very positive things about the early results of the ETF approval. If approval comes in January, analysts believe that BTC’s market value could increase by about $1 trillion and the price could rise above $85,000. Galaxy Digital predicts a 74% increase in price in the first year following the launch of the spot BTC ETF.
These forecasts indicate that the total market value of cryptocurrencies could increase by over 100%. For some altcoins, this could mean gains exceeding tenfold.
While some investors anticipate that a spot ETF approval could increase liquidity, institutional investors have already started to enter Bitcoin and crypto. We draw attention to CoinShares reports every Monday and the steady inflows continue in an exciting manner. Last week, institutional entries into just Bitcoin were $39.9 million, and net inflows have been ongoing for 11 weeks.
This year, net entries into cryptocurrencies amounted to $1.88 billion.