Bitcoin surged to its highest levels since April 2022, triggering a wave of excitement in the Asia trading session. However, those betting against it are bracing themselves for potential volatility linked to the forthcoming ETF.
The excitement around the United States’ first spot Bitcoin exchange-traded fund (ETF) fueled Bitcoin’s upward momentum, propelling it to reach $45,922 on Bitstamp.
Speculation and rumors abound regarding the ETF, with talks hinting at a potential decision even before the official approval window opens on January 4.
Traders unanimously attribute the recent surge in Bitcoin’s price to the anticipation of the ETF approval. Analysts and traders, like Crypto Tony and Scott Melker, observe the market behaving as if an ETF approval is imminent.
While some selling activity was detected in the order book, the volume remained relatively subdued. Traders are eyeing previous highs, around $44.4K, as a crucial level in case of a dip.
Estimates suggest Bitcoin could potentially reach $48,000, especially amidst ETF speculation.
Despite Bitcoin gaining around 8% in 2024, short positions haven’t suffered significant losses. The data indicates only $38 million in BTC shorts got liquidated, highlighting the resilience of those betting against Bitcoin.
While funding rates hinted at optimism about the ETF’s positive impact, some traders were caught off guard by Bitcoin surpassing $45,000. Perpetual swap traders seemed unprepared for this upward movement, creating potential volatility around the $45K mark.
In essence, the market is witnessing a dynamic interplay between spot Bitcoin price movements and derivatives, setting the stage for potential volatility, particularly around the $45,000 threshold.