The Bitcoin price has risen to over $45,900 in the past few hours, an increase of 7.5% in the past 24 hours. These are the three main reasons:
#1 huge offer from CME
The recent rise in the price of Bitcoin was mainly driven by activity on the Chicago Mercantile Exchange (CME). At one point, the Bitcoin price on CME was about $1,400 higher than on Coinbase, indicating significant buying pressure on this platform.
The CME Group, a renowned exchange for cash-settled Bitcoin futures contracts, attracts a sizable base of institutional investors, making its price movements particularly notable. Analyst Will Clemente marked the unusual trading activity, stating via
Analyst @MacnBTC supports this observation noticed, “Something is clearly leaking as the CME is up +8.5% on the day.” Bluntz Capital echoed similar sentiments, noting: “CME trade fi monkeys, huge premium.”
CME tradfi monkeys monkeys, huge premium pic.twitter.com/dwfW0shLB7
— Bluntz (@Bluntz_Capital) January 2, 2024
#2 Discover Bitcoin ETF Approval Rumors
The approach of the January 10 deadline for the US Securities and Exchange Commission (SEC) decision on approving a spot Bitcoin exchange-traded fund (ETF) has significantly increased market expectations. As a Bitcoinist reported today the SEC is reportedly doing the final paperwork.
Furthermore, rumors increased yesterday that the SEC could approve a series of spot Bitcoin ETFs as early as today, January 2. A Reuters report indicated that the SEC could inform issuers today, Tuesday or Wednesday, about their approval to launch spot Bitcoin ETFs. Bitcoin ETFs in the following week. This speculation may have created a sense of FOMO (Fear of Missing Out) among investors.
However, this is by no means a foregone conclusion. FOX Business’s Eleanor Terrett shared insights about X, commenting on the unpredictability of the SEC. Terrett noted, “While the SEC is certainly unpredictable, I would be surprised if any approvals were to occur [today]. […] The SEC must still review AND comment on any changes made to the S-1s filed Thursday/Friday.”
#3 Strong technical features on multiple time frames
On the technical front, Bitcoin showed strong bullish signals across different time frames. Renowned crypto analyst Skew focused on the 30-minute chart of BTC/USDT. In a post on X, Skew shared an attached diagram and analyzed:
BTC 30min: Systematically this was super clean. Price tested both 4H 200MA and 200EMA and then sharpened with 4H 200MA before regaining 1H 200MA and 200EMA (momentum ignition). Technical turn from previous resistance to running towards the highs. Now we see how much momentum is behind this.
On the daily chart, BTC bounced off the bottom of the rising trend channel and is now trying to overcome the upper resistance. BTC has once again respected the trend that started in mid-October and is now starting a new breakout attempt. A daily close above $45,500 could be decisive. Then the Fibonacci retracement level of 0.618 at $48,700 could be the next target. At the time of writing, BTC was at $45,693.
Featured image created with DALL·E 3, chart from TradingView.com
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