- Bitcoin whale wallets increased as anticipation surrounding the Spot BTC ETF rises.
- Analysts note that Bitcoin’s Relative Strength Index hit its most bullish level since the BTC price rally started on October 15.
- Bitcoin price could hit $45,000 if the two bullish signals remain favorable,according to experts at Santiment.
Bitcoin price climbed back above $44,200 on Thursday, the highest level in ten days.. The latest spike in BTC price is supported by optimism surrounding the approval of a Bitcoin Spot ETF in the US.
Bitcoin price rally has led to an increase in Bitcoin whale wallets, or these addresses that hold 1,000 or more in Bitcoin, after a two-week decline. Analysts at crypto intelligence tracker Santiment said that Bitcoin price is likely to hit the $45,000 level.
Daily Digest Market Movers: Bitcoin rallies alongside increase in whale wallets, Spot BTC ETF optimism
- According to Santiment data, Bitcoin’s ongoing price increase is supported by the rising optimism on the Spot BTC ETF approval by the US Securities and Exchange Commission (SEC), the country’s financial regulator.
- The number of wallets holding 1,000 Bitcoin or more hit 22,100 on Thursday, reverting a consistent decline in the past two weeks.
- Santiment analysts said that Bitcoin's daily Relative Strength Index (RSI) has climbed to its highest level since October 15, when BTC price first started rallying.
#Bitcoin has crept back up as high as $44.2K today, a 10-day high. This latest climb has been aided by #ETF optimism, but more importantly, an increase in whale wallets. 22 100+ $BTC wallets are back on the network after a 2-week decline. Additionally, the asset's
— Santiment (@santimentfeed) December 20, 2023
- The SEC has met with several spot Bitcoin ETF issuers regarding updates on their applications. Bloomberg ETF analyst Jeff Seyyfart has set the odds of Spot Bitcoin ETF approval at 90% before January 10.
- Less than a month away from this date, markets are increasingly optimistic about the chances of an approval, fueling broader sentiment in crypto markets.
- Spot Bitcoin ETF approval could act as a bullish catalyst for BTC price. The upcoming halving and rising institutional demand for cryptocurrency could also contribute to its rise.
Technical Analysis: Bitcoin price eyes gains
Crypto analyst on X (formerly Twitter) @TraderMayne said that a rally to $45,000 is likely in Bitcoin’s current uptrend. The analyst’s thesis is aligned with Santiment experts’ prediction of BTC price rally to $45,000.
BTC/USDT Perpetual Contract. Source: TraderMayne’s tweet on X
At the time of writing, Bitcoin price is $43,488 on Binance. The asset gained nearly 2% this week.
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.