Gold prices have hit a new all-time high, climbing above the key $2,100 mark on December 4th. Meanwhile, Bitcoin (BTC) rose above $41,000 for the first time in 19 months.
BTC/USD (blue) versus gold price (orange) Source: Tradingview
Bitcoin price rises to over $41,000
After some struggles, Bitcoin has made it back above $40,000. He hasn't been at this level since April 2022. It rose by 2 percent within 24 hours and reached a 19-month high.
Wild tailwind for bitcoin:
✅ New ATH in gold
✅ Abolish the central bank
✅ Worst bond crash in 250 years
✅ BTC ETF on the threshold (?)
✅ Real Estate Shakes
✅ Consumer technology is getting weaker
✅ Banks are shaking
✅ Fed gets ready to pump
✅ Halving in April
✅ Bitcoin L2 is here
— Tuur Demeester (@TuurDemeester) December 4, 2023
Additionally, Bitcoin is up over 140 percent since the beginning of the year.
According to Matrixport's head of research Markus Thielen, there is even reason for even more optimism. Looking at some historical trends from previous bull cycles, the upcoming Bitcoin halving is predicted to hit over $60,000 in April next year and even $125,000 by the end of 2024.
These predictions are based on the history of price increases that preceded the halvings. An increase of over 200 percent is expected.
“On the verge of a Bitcoin spot ETF”
The possible approval of a Bitcoin spot ETF in the United States also gives a boost to the optimistic forecasts.
13 providers, including industry giants such as BlackRock and Grayscale, are waiting for a decision from the US Securities and Exchange Commission (SEC).
ETF analysts at Bloomberg believe it is very likely that all applications will be approved at once by January 10th. This would begin a new era of institutional investment in Bitcoin and the price could also benefit from a strong boost.
“It is very likely that we are on the verge of a Bitcoin spot ETF,” commented Bitcoin analyst Willy Woo on X about the new highs in gold prices. “The first commodity ETF was SPDR Gold Trust. It offered investors an easy way to add gold to their portfolio.”
Woo added:
“After launch, gold enjoyed an 8-year rally between 2005 and 2012, with not a single year of decline.”
The psychologically important $40,000 mark therefore reflects bullish market sentiment, fueled by the expected approval of a Bitcoin ETF in January and the prospect of regulatory progress in general. The Bitcoin Halving is expected to provide additional tailwind for the BTC price over the next five months.
This article does not constitute investment advice or a recommendation. Every investment and trading involves risk and you should do your own research before making a decision.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.