bitcoin price has seen a significant rise, surpassing the $50,000 mark as Wall Street exchange-traded funds (ETFs) gained approval from the US Securities and Exchange Commission (SEC) on 11 January.
This bullish momentum, coupled with increased demand for ETFs, has propelled bitcoin into a fully formed bull run just months ahead of the expected halving event, which is expected to further amplify the ongoing bullish trend.
Wall Street ETFs Drive bitcoin Demand
In a recent CNBC interview With Anthony Pompliano, it was revealed that Wall Street ETFs are buying approximately 12.5 times more bitcoin per day than the network can produce.
This increase in demand from institutional investors has contributed to bitcoin's price appreciation. Pompliano claims that bitcoin has become Wall Street's preferred asset and predicts that increased demand through ETFs could lead to a significant rise in its price.
On the other hand, the analysis firm Material Indicators has identified $53 million in bitcoin buy orders accumulated at the $50,000 level on the Binance order book. This The substantial demand indicates strong investor interest in bitcoin at this price.
However, the company believes that a price retest of support levels may be imminent, although the timing remains uncertain.
Is bitcoin Price Rally Facing a Possible Correction?
If bitcoin price successfully breaks above the $50,000 level, material indicators anticipate minimal resistance on the way towards $52,000 and $58,000. This scenario raises the possibility of a substantial short squeeze, as investors who have bet against the asset could be forced to cover their positions, driving the price even higher.
However, the much-awaited inflation report scheduled for Tuesday could trigger a correction in the market as its findings may affect investor sentiment and market dynamics.
Overall, bitcoin's price rise above $50,000 is attributed to Wall Street's approval of ETFs and the subsequent rise in institutional demand. The influx of capital from these ETFs has contributed to bitcoin's bullish momentum, with expectations of further price appreciation.
As btc continues to capture the attention of Wall Street, market participants are eagerly awaiting new developments and possible upward movements in the price of bitcoin, with possible corrections in the future.
Currently, the price of bitcoin has increased by more than 3.4% in the last 24 hours, along with an uptrend of 16% in seven days.
Featured image from Shutterstock, chart from TradingView.com
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