Bitcoin surges amid ETF hopes and safe-haven demand By Investing.com
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© Reuters.
NEW YORK – ‘s price jumped to $37,700 as traders liquidated leveraged short positions and engaged in aggressive buying, fueled by expectations of potential U.S. spot Bitcoin ETF approvals. This surge comes after a significant dip on Tuesday when the cryptocurrency’s price fell to $35,000, prompting the liquidation of leveraged longs worth approximately $300 million.
The optimistic sentiment in the crypto market is partly due to macroeconomic shifts. Indications that the Federal Reserve might move from its tightening cycle to a rate-cutting cycle have played a favorable role for Bitcoin. This transition occurs against a backdrop of declining stock prices, bond yields, and a weaker dollar value.
Geopolitical tensions also influence the market dynamics as investors seek safe-haven assets amid Israel’s actions in Gaza and broader Middle East unrest. Larry Fink of investment giant BlackRock (NYSE:) has referred to Bitcoin as “digitizing gold,” underscoring its growing appeal as a safe-haven asset.
If Bitcoin can breach the $38,000 threshold, market watchers suggest it may set its sights on the psychologically significant $40,000 level. Meanwhile, the broader cryptocurrency market is showing signs of vigor, with Ether [ETH] climbing over 3% to surpass $2,000 once more. Altcoins like [SOL] and [AVAX] are leading the charge with substantial gains attributed to reduced concerns around FTX and increased institutional interest for SOL, while AVAX benefits from its involvement in a tokenization proof of concept with JPMorgan and Apollo.
The CoinDesk Market Index (CMI) reflected this positive trend with a 5% increase. Analysts from ByteTree emphasized Bitcoin’s robust performance relative to traditional assets such as U.S. equity indexes and gold. They noted the strengthening altcoin trend following two years of crypto winter and pointed out that the ByteTree Crypto Average (BCA) signaled a four-star rating, indicating broad market strength and recommending greater exposure to cryptocurrencies. “The good times are here,” said the analysts, highlighting the market’s buoyancy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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© Reuters.
NEW YORK – ‘s price jumped to $37,700 as traders liquidated leveraged short positions and engaged in aggressive buying, fueled by expectations of potential U.S. spot Bitcoin ETF approvals. This surge comes after a significant dip on Tuesday when the cryptocurrency’s price fell to $35,000, prompting the liquidation of leveraged longs worth approximately $300 million.
The optimistic sentiment in the crypto market is partly due to macroeconomic shifts. Indications that the Federal Reserve might move from its tightening cycle to a rate-cutting cycle have played a favorable role for Bitcoin. This transition occurs against a backdrop of declining stock prices, bond yields, and a weaker dollar value.
Geopolitical tensions also influence the market dynamics as investors seek safe-haven assets amid Israel’s actions in Gaza and broader Middle East unrest. Larry Fink of investment giant BlackRock (NYSE:) has referred to Bitcoin as “digitizing gold,” underscoring its growing appeal as a safe-haven asset.
If Bitcoin can breach the $38,000 threshold, market watchers suggest it may set its sights on the psychologically significant $40,000 level. Meanwhile, the broader cryptocurrency market is showing signs of vigor, with Ether [ETH] climbing over 3% to surpass $2,000 once more. Altcoins like [SOL] and [AVAX] are leading the charge with substantial gains attributed to reduced concerns around FTX and increased institutional interest for SOL, while AVAX benefits from its involvement in a tokenization proof of concept with JPMorgan and Apollo.
The CoinDesk Market Index (CMI) reflected this positive trend with a 5% increase. Analysts from ByteTree emphasized Bitcoin’s robust performance relative to traditional assets such as U.S. equity indexes and gold. They noted the strengthening altcoin trend following two years of crypto winter and pointed out that the ByteTree Crypto Average (BCA) signaled a four-star rating, indicating broad market strength and recommending greater exposure to cryptocurrencies. “The good times are here,” said the analysts, highlighting the market’s buoyancy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
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