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Bitcoin
and other cryptocurrencies gained on Thursday—despite an absence of major crypto catalysts—as traders remained bullish on the momentum behind digital asset prices into the end of the year.
The price of Bitcoin rose 3% over the past 24 hours to above $43,950, the highest level in ten days, though still shy of the recent peak near $44,500 that marks the largest digital asset’s highest level since April 2022. While Bitcoin has seen choppy and rangebound trading over the past few days, the token has still surged by more than 50% since mid-October, sparking calls of a new crypto bull market.
“This week has witnessed a sideways trend,,” said Rachel Lin, CEO of trading platform SynFutures. “Overall, the market remains in a consolidation phase, which inevitably follows a massive bullish phase like we saw in November.”
Much of the momentum behind digital assets has come from anticipation that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF)—perhaps as soon as early January. Approval of such a fund is expected to usher in a fresh wave of investor interest at a time when token supply remains historically tight, which could see prices spike higher.
Expectations that the Federal Reserve will cut interest rates multiple times next year has also helped, boosting Bitcoin alongside the
Dow Jones Industrial Average
and
S&P 500
amid a macro backdrop supportive of all risk-sensitive assets.
With a decision from the Securities and Exchange Commission on a spot Bitcoin ETF looming the other side of New Year’s Eve, and few major economic indicators due beyond Friday’s inflation data, crypto now faces a lack of catalysts into the holidays. Nevertheless, traders remain optimistic that Bitcoin will continue to see gains, with jockeying in the crypto derivatives market suggesting strongly bullish sentiment and continued bets that the token could cross $50,000 in the coming weeks and months.
“The put-call ratio remains skewed, favoring the calls. The top 10 options with the highest open interests continue to be all calls, which shows the market is expecting more upward potential than downward risk,” said Lin. In the options market, calls represent wagers that prices will rise, while puts are bets that prices will fall.
Beyond Bitcoin,
Ether
—the second-largest crypto—rose 2% to $2,260. Smaller tokens or altcoins also gained, with
Cardano
climbing 3% and
Polygon
popping 2%. Memecoins were similarly strong, with
Dogecoin
jumping 2% and
Shiba Inu
up 2%.
Write to Jack Denton at [email protected]
Read the full article here
