Bitcoin has returned. The price skyrocketed to $37,000, the highest point of the year as demand continued to rise. The price of Bitcoin increased by about 137% from its 2022 low.
The market capitalization of all cryptocurrencies is therefore getting close to $1.4 trillion. Most cryptocurrencies, including OKB, Huobi Token, Chainlink, Cardano, and Solana, have seen increased gains as a result of this trend.
Why the price of bitcoin is rising
The price of Bitcoin is rising for several reasons. First, a Bloomberg story stating that the window for the approval of a possible Bitcoin ETF had opened was the most current news.
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On Thursday, the window for Blackrock’s, Franklin Templeton, and Invesco’s approval opened. Analysts predict that by January 10th, permission will have been granted.
Second, the price of Bitcoin is rising in tandem with the open interest in futures. According to data, open interest in CME has increased to $100,000 BTC for the first time ever.
The total amount of open interest in Bitcoin futures increased to $15.9 billion on Thursday, the biggest level since April 7th of last year. This open interest is mostly in Deribit, OKX, CME, and Binance.
Third, the Fed’s actions have caused the price of Bitcoin to soar. The bank decided to keep interest rates at their current range of 5.25% to 5.50% last week. Furthermore, it gave room for further rate increases. The majority of economists, nevertheless, think that the bank won’t raise rates once again.
Furthermore, the anticipation of the April halving has caused a surge in the price of Bitcoin. Bitcoin performs exceptionally well prior to the halving because the supply is decreased.
The main reason the coin has increased is that it has verified that it is an actual asset. Over the last ten years, it has weathered several significant events. The fall of Mt. Gox, FTX, Terra, Three Arrows, and Celsius were a few of the major occurrences. In this climate of high interest rates, it has also performed well.
Altcoins will gain
The surge in Bitcoin may mean further gains for other cryptocurrencies. The price of Chainlink (LINK) surged to a high of $7.33, over 50% higher than its lowest point in June of this year.
The currency will probably gain when other cryptocurrencies start to recover. It will also gain from the expansion of decentralised finance (DeFi) and tokenization.
Decentralised and centralised finance (DeFi) tokens are the other tokens that stand to gain from this. The demand for cryptocurrencies will increase, which will help tokens like Uniswap (UNI), Huobi Token (HT), and OKB. Over the last few weeks, the volume on the majority of these exchanges has increased.
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