Bitcoin has crossed the $41,000 mark. Traders feel optimistic, even though the current bull rally has cost them $200 million. Analysts predict a further surge in the price of the first cryptocurrency and the growth of the entire crypto market.
According to CoinMarketCap, Bitcoin’s price has increased by more than 6% over the past day and exceeded $41,000. Most altcoins from the top 50 have also entered the green zone.
Analysts believe that the key factors that triggered the current bull rally include:
- The price of gold tested a new all-time high (ATH) of $2,100 during the Asian session on December 4.
- A new wave of speculation amid expectations of the SEC’s approval of spot Bitcoin ETF applications on January 10.
- Probable imminent lowering of benchmark interest rates in the United States.
The first cryptocurrency rose above $41,700. As of 13:00 (GMT+2), December 4, BTC was trading at $41,915. The price of ETH grew by 4.5% over the past 24 hours to reach $2,260. Meme coins DOGE and SHIB also showed active growth, with their prices rising by 5.3% and 10%, respectively, over the past 24 hours.
Traders remain optimistic and expect further growth of the crypto market. This is despite the fact that over the last 24 hours, positions worth over $220 million were liquidated. According to CoinGlass data, over the past 24 hours there were liquidated:
- $90.18 million in BTC;
- $32.68 million in ETH;
- more than $100 million in other altcoins.
As of 13:00 (GMT+2), December 4, a total of $222.79 million has been liquidated over the day, including $50.5 million in long positions and $172.3 million in short positions.
Analysts believe that the price of Bitcoin will continue to grow strongly in 2024. Markus Thielen, Head of Research and Strategy at Matrixport, expects the price of digital gold to hit $60,000 by April 2024 and $125,000 by late 2024. Adam Back, CEO of Blockstream, claims that BTC will reach $100,000 before halving, scheduled for April 2024.
However, not all analysts are as optimistic. The current price rally is considered by some experts as a red flag. In particular, a trader named Crypto Chase believes that the ongoing price rise could trigger a massive sell-off and bring Bitcoin down by at least $10,000.
More than 70% of all BTC remain inactive, as long-term investors expect an increase in the value of the first cryptocurrency and are in no hurry to sell their assets.
