Bitcoin Touches $45,000 Amid ETF Speculation; Investors Cautioned on Market Volatility
Summary:
Bitcoin (BTC) revisited the $45,000 mark on January 8 amid speculation about Exchange-Traded Funds (ETFs). This speculation resulted in almost a 3% daily surge in BTC prices. Data from CoinGlass showed an increase in Bitcoin futures' open interest. Several Bitcoin community names forecast more price fluctuations influenced by the prospective ETF decision while also observing potential shifts in focus from gold to Bitcoin. The article highlights that all investment or trading actions should be taken considering inherent risks.
On the brink of the Wall Street opening on January 8, Bitcoin (BTC) veered back to touch $45,000, a fluctuation largely attributed to the ongoing chatter surrounding Exchange-Traded Funds (ETFs). This caused a ripple in the crypto market resulting in a nearly 3% daily surge in BTC prices, as per details from TradingView and Cointelegraph Markets Pro.
With an increased speculation and interest from dealers, the leading digital currency experienced a bounce in its purchase rate. As per Material Indicators, a trading information source on X (previously known as Twitter), investors speculating on ETF might be in for disappointment if there's no approval given shortly. It suggested that Wednesday could possibly be the day, but also warned of a potential drop as large investors ("whales") are poised to jostle shaky players and make purchases at a diminished price.
Last week's liquidations, which deflated a significant part of open interest by unwinding leveraged BTC long positions, were mentioned by Material Indicators. Currently, Bitcoin futures open interest is at 407,400 BTC, an increase of over 8,000 BTC for the day, according to data compiled by CoinGlass.
In response, finance commentator Tedtalksmacro questioned if the open interest uptick signals an imminent ETF verdict. CoinGlass, however, hinted at a surge in ask liquidity just above the spot price, indicating a possible scenario if the market propels upwards quickly.
Despite the growing optimism concerning the roll-out of ETFs, notable figures in the Bitcoin sphere retain a wary stance. Hodlonaut, a consultant to The Bitcoin Advisor – a Bitcoin custody service, anticipates further unpredictable price fluctuations influenced by the ETF decision.
He warns X subscribers about surprises in terms of more price uncertainties connected to the ETFs, urging them not to trade and emphasizing on a low time preference. Additionally, speculative shifts were observed by James Van Straten, a CryptoSlate research and data analyst, who noticed a 1% price drop in gold. He ponders over the possibility of market punters transitioning their focus onto Bitcoin.
This piece isn't intended as investment guidance or suggestions. Every investment or trading action involves inherent risks, and readers are advised to carry out their own extensive research before proceeding with any financial decision.
Published At
1/8/2024 5:42:45 PM
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