At the time of writing, BTC is finding buyers at $48,500, and exactly one month after the January 12th drop, the price is back to where it started. If the rise continues, in the coming hours, there is potential for the price to reach a new two-year high. So, what’s the current situation in the markets? What should crypto investors know as they start the new day?
Why Is the Bitcoin Price Rising?
The Spot Bitcoin ETF data released on Friday was very positive. This is actually the main reason for the increase in BTC price. GBTC experienced an outflow of only about $50 million, while reserves of other ETF issuers continue to grow. Excluding GBTC, which has surpassed the $10 billion threshold, reserves of ETFs could lead to an upward revision of the targeted inflows for 2024.
On the other hand, miners and other large investors who speculatively triggered the sell-the-news event this time were mistaken. The Bitcoin ETF, which will cause prices to rise in the medium and long term, is set to become one of the biggest channels for attracting more new investors into crypto.
Of course, such a rise was also expected for the liquidation of short positions accumulated in futures contracts.
In March 2022, we saw a peak that trapped crypto investors. Subsequently, bear markets intensified. The current price is now exactly at this peak, and if it can close above $48,600, we might see the rally continue to $52,300 and $54,000, and then up to $58,000.
Current State of Cryptocurrencies
The cumulative value of cryptocurrencies has reached the targeted $1.82 trillion, and the next goal is above $2 trillion. If the current positivity continues, double-digit increases in altcoins could occur. Volumes have fallen to $41.7 billion, and the scenario we wrote about on Friday is unfolding. Bulls could target exciting peaks in Bitcoin and some altcoins, taking advantage of the thin liquidity.
Among the top 100 cryptocurrencies, DYM, BEAM, KAS, and BONK Coin were the biggest gainers of the week, with increases ranging from 92% to 32%. Due to being delisted by Binance, the price of XMR Coin fell by 30% weekly. We have long been discussing that privacy-focused altcoins are likely to face long-term trouble.
