Bitcoin’s recent surge in price has resulted in over 80% of holders being in profit, which is the highest profitability level since December 2021, according to IntoTheBlock, a blockchain analytics firm.
This milestone is significant as it represents the highest profitability level recorded by Bitcoin in the last two years. Analysts and market participants believe that BTC could continue to rise, with indicators suggesting the possibility of it surpassing the $40,000 price zone soon.
One contributing factor to Bitcoin’s bullish momentum is the growing optimism surrounding the potential approval of a Bitcoin Spot exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Analyst James Seyffart predicts a potential approval order for the Bitcoin Spot ETF between January 8 and January 10, 2024, which could pave the way for Bitcoin to reach beyond its previous all-time high.
According to Mike Novogratz, CEO of Galaxy Digital, if the SEC approves spot BTC ETFs, Bitcoin could return to its previous all-time high of $69,000 within a year.
Adding to the positive outlook, analysts at Matrixport project Bitcoin to reach $60,000 by April 2024 and double that mark by the end of the year. They attribute this bullish forecast to historical patterns, noting that previous bull markets followed bear markets, with 2023 being the first bullish year in a series of cycles.
Corporate giants like MicroStrategy are also making significant moves in the Bitcoin space. MicroStrategy recently invested $593 million in Bitcoin, acquiring an additional 16,130 BTC at an average price of $36,785 per Bitcoin. This demonstrates the increasing interest from institutional players in Bitcoin and reinforces the positive sentiment surrounding the cryptocurrency market.
As of now, the price of BTC stands at $38,800, with a 24-hour trading volume exceeding $13 billion. The Relative Strength Index (RSI) on the weekly timeframe is at 91, indicating strong market momentum. Bitcoin recently gained 2.9%, moving from around $37,800 to nearly breaching the $39,000 mark.