Bitcoin Price Is Flying: Here's Why and What to Expect!

Following the New Year holiday, the financial world in the U.S. is back in action with major economic events shaping the week. This includes the minutes of the Fed's December meeting, which are important for Bitcoin's price. Meanwhile, the cryptocurrency market is experiencing an upswing. Bitcoin price is leading the gains, reaching an intraday high of $45,500. Here are the details...

Bitcoin price may have been influenced by the week's economic calendar

Some experts are highlighting key economic events for the U.S. this week, focusing on reports reflecting U.S. labor market trends and the release of the Fed's December meeting minutes. Investors are particularly curious about the predictions regarding the central bank's shift in the direction of easing monetary policy and potential clues regarding the expected rate cut schedule. Crypto markets are in the grip of Bitcoin ETF fever, with the total market capitalization rising to a 20-month high of $1.82 trillion. Bitcoin's price surged 7.5% to $45,500, its highest point since March 2022. Ethereum also increased by 5% to $2,389, while various altcoins such as Solana, Cardano, Avalanche, and Polkadot recorded significant gains of over 6%.

Bitcoin's rally above $45,000 in Asia on Tuesday morning was supported by investors' expectation that spot Bitcoin ETFs would potentially be approved in the United States. The largest cryptocurrency by market capitalization reached its highest level since April 2022 in 24 hours. The U.S. Securities and Exchange Commission is expected to rule on spot Bitcoin ETF applications. Notifications will likely take place as early as Tuesday or Wednesday.

Major players behind the price action

Market experts attribute the recent price action to news about major executives, including BlackRock and Fidelity, and confirm that brokers will support Bitcoin operations. Justin d'Anethan, head of APAC business development at crypto market maker Keyrock, highlighted the growing belief that ETFs will be approved soon. Analysts such as Matrixport's Markus Thielen and BIT's Joe Caselin predict Bitcoin's potential to surpass $50,000, citing factors such as rising funding rates and optimistic market sentiment.

As the price of Bitcoin rises and expectations for spot Bitcoin ETF approvals increase, the cryptocurrency market is entering the new year with increasing excitement. Investors are closely watching economic indicators and the results of the Fed's December meeting for potential impacts on Bitcoin's trajectory in the coming weeks. Time will tell what will happen for the price of Bitcoin in the coming period. As the price of Bitcoin affects the entire market, altcoin investors are also watching the developments with interest.

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