The price of bitcoin (BTC) has returned to levels last observed in April 2022, just before the Terra UST ecosystem collapsed. Market observers are thrilled at its breakthrough above the $42,000 psychological level, to the extent that inflated forecasts regarding future gains have been made.
Bitcoin Price Surges Past $44,000 as Coinbase CEO Touts BTC’s Potential to Safeguard Western Civilization
With 175% of the price gain so far this year, the price of Bitcoin (BTC) is surging and may rise even further. It happened just twenty-four hours after Coinbase CEO Brian Armstrong stated, “I’ve been thinking that Bitcoin might hold the key to advancing Western civilization.”
The CEO of Coinbase claims that although the US is headed toward increasing deficit spending and expanding the money supply, the public now has access to cryptocurrency, which is acting as a counterbalance to inflation.
In the meantime, an analyst stated in a CNBC interview that “Bitcoin has performed best 12 to 16 months after halving.” The expert did note that with the greater price of Bitcoin, things might be different this time around and that miners would be lowering their output in response to the lower block rewards.
The “stock to flow ratio,” or the ratio of the total number of tokens in circulation to the annual Bitcoin mining volume, serves as a definition of scarcity in this context.
The market is riding on FOMO as there haven’t been any approvals for spot Bitcoin exchange-traded funds (ETFs) yet and the halving event is still five to six months away.
With the expectation that the introduction of spot ETFs will eventually attract billions of dollars in new investment, money is pouring into the Bitcoin market. This explains why investors are already contributing capital as seed money to the ETF products.
More specifically, BlackRock secured $100K in seed investment for its Spot BTC ETF, according to a recent CoinDesk story. The capital inflow, also known as seed investment, is the first round of money that enables an ETF product to finance the development units that support the ETF. This enables the offering and trading of shares on the open market.
BlackRock’s most recent filing with the US Securities and Exchange Commission (SEC) served as inspiration for an unidentified investor’s act of faith.
Increase in the price of bitcoin liquidates holdings worth about $85 million.
Up to $69 million worth of short positions and $15.82 million worth of long positions were liquidated during the spike.
However, open interest increased to $18.28 billion, the highest amount since April 2022, a 20-month high.
As of 19:25 GMT, the price of bitcoin is $43,894 after it was rejected from the supply zone’s midline at $43,860. A strong candlestick close over this mark would pave the way for a psychological home run to $50,000.