Bitcoin has experienced a noteworthy surge in the past few hours, with its price surging to over $45,900, reflecting a 7.5% increase within the last 24 hours. This surge can be attributed to three key factors.
The primary driving force behind the recent uptick in Bitcoin’s price is attributed to the activities on the Chicago Mercantile Exchange (CME). Notably, the Bitcoin price on CME soared to approximately $1,400 higher than on Coinbase, indicating substantial buying pressure on this platform. The CME Group, known for its cash-settled Bitcoin futures contracts, attracts a considerable institutional investor base, making its price movements particularly notable.
Analysts have observed this unusual trading activity, with comments such as, “CME trading at fresh 52-week highs on an illiquid Monday night like someone knows something.”
Market anticipation has heightened due to the approaching January 10 deadline for the United States Securities and Exchange Commission’s (SEC) decision on approving a spot Bitcoin exchange-traded fund (ETF). Rumors have circulated that the SEC might approve a batch of spot Bitcoin ETFs as early as January 02, creating a sense of FOMO (Fear of Missing Out) among investors.
However, it’s crucial to note that this approval is not guaranteed, and some analysts, such as Eleanor Terrett of FOX Business, emphasize the SEC’s unpredictability in the approval process.
From a technical standpoint, Bitcoin has displayed strong bullish signals across multiple time frames. Analysts, including Skew, have pointed out positive indicators on the 30-minute chart of BTC/USDT. Additionally, on the daily chart, Bitcoin bounced off the lower end of the ascending trend channel and is currently attempting to surpass upper resistance.
A daily close above $45,500 could be pivotal, potentially setting a target at the 0.618 Fibonacci retracement level of $48,700. As of the latest update, Bitcoin stands at $45,693.
| Factors | Details |
|---|---|
| Bitcoin Price Increase | Over $45,900, up by 7.5% in the last 24 hours |
| 1. CME’s Bid Influence | CME Bitcoin price $1,400 higher than Coinbase, indicating significant buying pressure |
| CME Group’s cash-settled Bitcoin futures attracting institutional investors | |
| 2. Spot Bitcoin ETF Approval | SEC’s decision on spot Bitcoin ETF approaching (January 10 deadline) |
| Rumors of potential approval, creating FOMO among investors | |
| Uncertainty emphasized due to SEC’s unpredictable nature | |
| 3. Strong Technicals | Positive signals on various time frames, including 30-minute and daily charts |
| Bitcoin respecting trend lines, attempting a breakout above $45,500 | |
| Daily close above $45,500 could be decisive, with a potential target at $48,700 (0.618 Fibonacci level) | |
| Current Bitcoin Price | $45,693 (as of press time) |