The price of Bitcoin has literally exploded since the start of 2023, with a phenomenal gain of more than 140% since January 1. Today, BTC exceeded the psychological threshold of $41,000 for the first time in 19 months, leading to the liquidation of many short positions.
Bitcoin Breaks Barriers with 140% Growth
Bitcoin has started 2023 explosively, jumping more than 140% since January. This week, it crossed the symbolic milestone of $41,000 for the first time in 19 months, marking ultra-bullish momentum.
This surge in prices reflects the market’s very positive expectations regarding a potential approval of bitcoin spot ETFs by the SEC in early 2023. This type of exchange-traded fund would allow traditional investors to more easily access Bitcoin through their usual brokerage accounts.
Many analysts renowned companies like Willy Woo consider the simultaneous approval of several ETFs very likely by January 10, thus fueling the current speculative frenzy.
This scenario is reminiscent of that observed in the wake of the launch of the first Gold ETF (SPDR gold ETF) in 2004, having initiated 8 consecutive years of price increases. For many experts, bitcoin could experience a similar surge.
ETF anticipation and favorable price outlook
Beyond short-term speculation, the bullish potential of Bitcoin remains extremely promising in the long term. According to projections based on previous halvings, its price could exceed $60,000 as early as April 2024, or even reach $125,000 by the end of 2024.
Furthermore, the liquidation this weekend of short positions amounting to $200 million reveals a clear reversal of the trend. Faced with this rally, many traders preferred to throw in the towel on their bearish bets.
On the derivatives side, open interest volumes have literally exploded on platforms like BitMEX. Proof that institutional investors are rushing to buy massively, anticipating the next surge.
In short, between the imminence of ETFs, the upcoming halvings and very bullish technical and on-chain indicators, all the signals are converging towards the advent of a new bullish market. Even after +140% in a few weeks, Bitcoin still seems largely undervalued.
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