The price of Bitcoin briefly exceeded $44K on Wednesday morning despite an uptick in the value of the U.S. dollar.
The US Dollar Index continued its upward trajectory today, reaching a two-week peak around the 104-index points, bolstered by a series of positive economic indicators, but that hasn’t dampened institutional interest in Bitcoin.
The overall market capitalization of the crypto market surged past $1.6 trillion, driven by remarkable weekly gains of about 15% for Bitcoin. Coinglass data also showed that open interest in CME’s Bitcoin futures increased over the past month from $3.66 billion to $5.02 billion.
Crypto investors are riding high on a tide of optimism over US interest rate decreases and the impending approval of bitcoin ETFs traded on US financial markets.
Bitcoin is already up by over 150% this year, but it is still over 40% behind its all-time high from 2021 Last month the CME took over the top spot in Bitcoin futures open interest from Binance, which many interpreted as a sign that traditional financial institutions are increasingly interested in crypto products.
Many analysts believe that the approval of spot ETFs will lead to a rapid rise in Bitcoin prices, but not everyone is convinced that the current bull run can continue.
However, some skeptics predict a “selling the news” style event within days or weeks of potential approval. The bullish bias remains, with Standard Chartered predicting the price of Bitcoin to reach $100,000 next year.
Despite Bitcoin’s bullish momentum, analysts observe that retail demand remains relatively stagnant. From an on-chain perspective, Bitcoin price could be the driving force for another significant rally.
However, for the bulls to confirm the $50K price levels, the flagship crypto asset will first need to break through the next key resistance level near $47K Bitcoin has overtaken Meta, the parent company of Facebook, in terms of market capitalization, securing the ninth-largest asset.
Building on this momentum, Bitcoin is now on its way to reaching the coveted $1 trillion market valuation
This is a milestone that further strengthens its position in the global financial landscape. In addition, the Accumulation Trend Score, a metric created by Glassnode that measures the relative strength of Bitcoin accumulation by the size of a company’s balances, shows an interesting trend. From mid-October to mid-November, the accumulation trend value was 1, indicating strong accumulation across all cohorts.
This period, characterized by “deep blue accumulation”, reflects the high level of commitment of market participants