The bitcoin rally continues, which with today’s purchases has returned above $40,000 and even above $41,000 for the first time since may last year can be read in the article written by VoceaEuropei.com in the appropriate section of the site: Stiri Economie
At the moment, the crypto par excellence is at $41,720, up by more than +4% compared to the previous close, with analysts now wondering whether the current phase of generalized euphoria will continue until the end of the year (and into 2024) also on the volatile cryptocurrency sector.
Market operators are increasingly convinced that the interest rates of the Federal Reserve (but also of the ECB) have reached their peak, in the wake of the decline in inflation we have witnessed in recent months. The changed scenario has shifted attention to a probable rate cut starting from the first half of 2024 and this has fueled the rally on global markets, rekindling interest in some traditionally more speculative assets such as cryptocurrencies.
But not only that, the recent purchases on bitcoin are also driven by the multiplication of rumors speculating on a possible approval by the SEC of the first Spot ETFs on the cryptocurrency. In particular, operators expect the approval of the first Spot ETF on BTC by iShare (BlackRock) from the SEC (the US Consob) shortly, with Bloomberg recently revealing that some expected ones could be approved as early as next month Spot ETF on bitcoin.
We remind you that just recently, the BlackRock Spot ETF obtained the CUSIP, an alphanumeric code which in the United States serves as an identifier for financial securities. This represents a further indication of a probable approval by the SEC of the first Spot ETFs on bitcoin, an event that would bring benefits for both investors and ETF issuers.
It would be a historic turning point for the cryptocurrency sector, in fact, a Spot ETF on bitcoin would make it substantially easier for “ordinary” people to make an investment in bitcoin . The performance of a Spot ETF is directly connected to the real-time value of bitcoin, therefore without the need to physically hold the cryptocurrency, thus eliminating several concerns for investors. Let us remember, for example, that the introduction of gold ETFs several years ago increased interest and access to the yellow metal, and the same can happen with bitcoin.
With today’s rise (+4%), bitcoin has broken upwards (and with increasing trading volumes) the resistance area at the psychological level of 40,000 dollars, prices that the crypto major had not seen for over 1 year ( April-May 2022). Bitcoin now shows an incredible increase of over +151% since the beginning of the year. +170% from the lows of the October-December 2022 period.
In the event of a continuation of the strength, the subsequent short-term resistance levels that could reject prices are found first at 42,160 dollars, maximum prices reached intraday today and then towards 42,500 points. From this point of view, a possible breakout of the resistance at 42,500 points could lead the digital asset again towards the resistance at 44,000 dollars.
On the contrary, the first most important support remains the psychological area of 40,000 dollars, a price level which if it were to be violated again on the downside could bring prices back towards the supportive area of 37,800 dollars.
Bitcoin is now on track to post its biggest annual rise since 2020, before the collapse of the TerraUSD stablecoin triggered a loss of more than $2 trillion in digital assets.
The increase in the price of bitcoin has also supported the prices of other smaller tokens such as Ether and Dogecoin, which currently show increases of +1% and +3.4% respectively. Bitcoin Cash also did well, jumping by 8%.
