U.Today - The price of Bitcoin (BTC) soared to a 21-month high, touching $45,386 and stabilizing at $44,804, marking a 1.4% increase.
Additionally, a massive liquidation of Bitcoin shorts, to over $115 million, took place in the past 24 hours.
A positive signal for risk assets
Renowned market analyst Tom Lee has the January surge in Bitcoin as a promising omen for risk assets more broadly.Lee's perspective suggests that the strong performance of Bitcoin could be an indicator of a broader market upturn.
The sentiment is especially significant given the cryptocurrency's influence and its role as a bellwether for other digital assets and possibly even for the wider financial markets.
This uptick in Bitcoin's value at the start of 2024 contrasts sharply with the bearish outlook prevalent among many market participants at the beginning of the previous year.
Potential Bitcoin spot ETF approval
In its latest note, Matrixport has on the imminent approval of a Bitcoin Spot Exchange-Traded Fund (ETF), which is expected to further propel Bitcoin's price, potentially reaching the $50,000 mark.The anticipation of this approval, potentially earlier than most traders expect, is creating a bullish sentiment in the market
This development is seen as a legitimizing factor for Bitcoin in institutional portfolios and could trigger a significant influx of investment.
Additionally, the current dynamics in the Bitcoin market, including a decrease in available supply due to increased use of cold storage and limited supply from mining companies, could lead to a supply shortage, further driving up prices.
Matrixport's analysis also ties in the potential impact of the US election cycle on Bitcoin's price, predicting an impressive rally.