Bitcoin price has now surpassed the Terra-LUNA crisis level, touching a high of $37,150 on Thursday. BTC price retraces after hitting a high, with the price now moving near the $36,700 level as a result of shorts liquidation in the last 24 hours. In fact, Bitcoin is now only halfway away from reclaiming the 2021 high of $69,000, which analysts predict to happen next year.
Bitcoin Price Reaches $37,000
Bitcoin has completed its full recovery to the Terra-Luna crisis level exactly a year after the Sam Bankman-Fried’s exchange FTX filed for bankruptcy.
“With Bitcoin trading back above the level when the Terra stablecoin imploded, crypto traders have officially moved on from those psychological scars,” said Markus Thielen, head of research at Matrixport.
The crypto market has to overcome the steepest monetary tightening by the U.S. Federal Reserve in four decades, stringent industry regulations, and heightened scrutiny.
Bitcoin saw upside moves during the Santa Claus rally earlier this year, the banking crisis in March, and spot Bitcoin ETF hype. The Federal Reserve has also hinted at dovish rate hikes until next year, making institutional investors extremely bullish.
Meanwhile, Bloomberg Intelligence analysts James Seyffart and Eric Balchunas said “Even if approvals don’t arrive this month, we still believe there’s a 90% chance of approval by Jan. 10.” In October, Bloomberg’s analysts raised odds of spot Bitcoin ETF approval from 75% to 90% after Grayscale’s victory in the court case.
“The ETF expectation is the top of a growing list of catalysts, which gives the current rally further legs,” said Josh Gilbert, market analyst at trading and investing firm eToro. Besides the ETF trigger, bets that the US Federal Reserve is done with rate hikes for now and an upcoming Bitcoin-halving next year are also fueling the rally, Gilbert said.
Popular crypto analyst Michael van de Poppe has also made a somewhat bullish prediction. He said “Anything between $38,000-40,000 is pretty much resistance and I’m not expecting a breakout in one-go.” However, he sees Bitcoin reaching $45,000-50,000 pre-halving.
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