In a surprising turn of events, a mere 48 hours after the United States proposed a substantial $4.3 billion settlement with Binance, a major player in the cryptocurrency market, Bitcoin defied expectations by surging to a new peak for the year.
Breaking through the $38,000 barrier early in the New York trading session on Friday, the cryptocurrency sector experienced the long-anticipated surge. Bitcoin’s recent consolidation within a pennant pattern suggested the possibility of a bullish upswing, and those predictions have now come to fruition.
Bitcoin’s Price Soars to Highest Level Since 2022
Bitcoin’s rally occurred after the Thanksgiving holiday in the US, marking its highest point since May 2022. This surge happened despite subdued activity in traditional markets. While the top coin has seen a slight pullback, it still maintains a 1.5% gain for the day.
Friday’s surge in Bitcoin’s price has traders buzzing with excitement, reigniting the fear of missing out (FOMO) sentiment. Thanks to this spike, Bitcoin may have the potential to reach the next major resistance level, around $42,000, in the coming weeks.
Some market observers are optimistic about its short-term trajectory, with trader Michael Van Pope suggesting in a tweet that the next milestone for Bitcoin is set at $40,000.
The agreement between the US Department of Justice and Binance, marking the forced resignation of CEO Changpeng Zhao and a $4.3 billion penalty, is undoubtedly the most significant development of the month. Richard Teng has been named as the new CEO of Binance, the world’s largest cryptocurrency exchange.
Bitcoin’s Circulating Supply in Profitable Territory
Another crucial factor impacting Bitcoin’s price is the recent increase in market liquidations. Long and short position liquidations have surged across different time frames, totaling $80.29 million in the last 24 hours, according to Coinglass statistics.
In a related development, during last week’s gain, 84% of Bitcoin’s circulating supply, equivalent to 16.36 million BTC, is currently in profit. Glassnode notes that this is historically noteworthy, significantly surpassing the 74% all-time mean number.
Adding to the positive outlook is the heightened anticipation surrounding the potential approval of spot bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission. With a looming deadline of January 10, the SEC is evaluating numerous pending ETF applications, and if approved, these ETFs could offer investors a more cost-effective way to enter the Bitcoin market, further bolstering the current bullish sentiment.
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