In the dynamic world of digital currencies, Bitcoin (BTC) has once again made headlines with a remarkable surge, surpassing the $43,000 threshold. This leap contributes to a significant uptick in the global crypto market cap, which now stands at an impressive $1.61 trillion, marking a 3.82% increase over the past day.
Despite experiencing a brief downturn to $40,500, likely due to a rise in transaction fees, Bitcoin quickly bounced back, achieving a 6% gain. This resurgence in Bitcoin’s value coincides with the announcement from Galaxy Digital, a prominent player in the cryptocurrency space.
#Bitcoin bounces back to $42k from $40k, retracements are healthy as I’ve been saying.
Still eyeing a $48k target. Anticipating accumulation at $43k-$47k before breaking $48k.
To put it in context, that’s $21k from ATH, a 43% move. $BTC moved 65% since October! pic.twitter.com/uVjZCnvBaz
— Cryptopig (Gem hunter & trader) (@cryptopigmedia) December 19, 2023
The company has announced its strategic focus on reviving failed crypto projects, including the high-profile FTX. With an aggressive asset acquisition strategy aimed at rescuing bankrupt crypto entities, Galaxy Digital’s latest move is seen as a key driver of the current bullish sentiment in the market.
BlackRock’s Bitcoin ETF Adoption Fuels Crypto Market Optimism
It’s important to note that BlackRock, the world’s largest asset manager, is modifying its proposed Bitcoin ETF, IBIT, to align with the U.S. Securities and Exchange Commission (SEC) preferences.
On December 18th, BlackRock announced a shift to a cash-only strategy for the ETF. This change, intended to comply with SEC requirements and streamline operations, involves accepting cash instead of Bitcoin for new ETF shares, following discussions with the SEC.
The SEC’s preference for a cash-only approach aims to mitigate the risks associated with Bitcoin.
BlackRock is making strategic changes to its proposed Bitcoin ETF to align with the SEC’s preferences@Portalcoin @federalreserve @BTC_Archive $portal$btc #crypto@CoinMarketCap https://t.co/VJ0ZHlKPg2 pic.twitter.com/rqTZlqanUr
— Poorya (@pooryasb) December 19, 2023
BlackRock’s adjustment is reflective of a broader industry trend, with firms like ARK Invest and Wisdomtree also revising their Bitcoin ETF proposals.
Consequently, this move towards ETF-focused strategies by key financial players is generating optimism within the crypto community, fueling hopes for the approval of Bitcoin ETFs.
BlackRock’s strategy, in line with SEC guidelines, underscores the ongoing efforts to bridge the gap between traditional finance and the cryptocurrency sector.
Coinbase Shares Surge, Buoyed by Bitcoin ETF Hopes
Coinbase, a major regulated crypto exchange (NASDAQ: COIN), has witnessed its shares surge by over 44% in the last month. This increase is fueled by the current crypto boom, driven largely by excitement over spot exchange-traded funds (ETFs).
Compass Point, an investment firm, has raised its price target on Coinbase from $145 to $200, joining other analysts in recognizing the exchange’s growth potential.
However, the ongoing optimism in the market is primarily driven by expectations surrounding the approval of spot Bitcoin ETFs, financial instruments directly linked to Bitcoin’s value. This anticipation has pushed Bitcoin’s price above $40,000.
BlackRock’s recent advancements with its spot BTC ETF proposal, now known as ‘IBIT’, further enhance this positive sentiment. Notably, Coinbase’s shares have skyrocketed by an impressive 355% this year, significantly outperforming major stocks like Nvidia.
CRYPTO BREAKING NEWS
Coinbase Stock is Up 44% Over Last 30 Days as Bitcoin ETF Hype Grows. Coinbase’s shares are up over 44% in the past 30 days following crypto market’s resurgence. The post Coinbase Stock is Up 44% Over Last 30 Days as… check us out @… pic.twitter.com/39IFAtv5rr
— InnovatekMobile (@Neome_com) December 19, 2023
Despite the inherent uncertainties associated with crypto’s volatility, some analysts remain bullish on Coinbase. They cite potential catalysts such as the approval of the Bitcoin ETF and expected rate cuts.
Compass Point’s recent price target increase to $200 indicates a potential upside of over 30% from its current level, reinforcing the positive outlook for Coinbase.
Therefore, these positive developments, including BlackRock’s progress with the spot BTC ETF and the remarkable surge in Coinbase’s shares, have significantly contributed to the optimism in the crypto market, aiding in propelling Bitcoin’s price above $40,000.
Bitcoin Price Prediction
Bitcoin (BTC/USD), the bellwether of the cryptocurrency market, witnessed a minor decline of 0.65%, settling at $42,400. This movement situates Bitcoin below a critical pivot point of $43,865. Immediate resistance levels loom at $44,715 and $45,965, while key supports are established at $41,615, $40,660, and $39,725.
Technically, the Relative Strength Index (RSI) stands at 52, indicating a neutral to slightly bullish market sentiment. The Moving Average Convergence Divergence (MACD) presents a value of -33.08 against a signal of 153.66, suggesting a complex and somewhat bearish market outlook.
Bitcoin Price Chart – Source: Tradingview
The 50-Day Exponential Moving Average (EMA) for Bitcoin is at $42,200. This figure positions the cryptocurrency just above a critical support level, maintaining a short-term bullish bias. Chart analysis reveals a consistent bullish trend above this EMA level.
In conclusion, Bitcoin’s overall trend appears bullish above $42,200. In the short term, the cryptocurrency is expected to challenge upper resistance levels, provided it maintains its trajectory above the 50 EMA.
This outlook indicates a cautious optimism among investors, as Bitcoin navigates through fluctuating market conditions.
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