A nearly 8% rise in the price of Bitcoin (BTC) over the past seven days has seen its market capitalization jump by over $50 billion to over $700 billion for the first time in seventeen months .
The cryptocurrency’s market capitalization most recently stood at around $729 billion, which translates to a BTC price of around $37,300, its highest level since before the collapse of the Terra blockchain in May 2022.
Bitcoin is up 36% over the past 30 days from its October low below $27,000, largely due to renewed institutional interest in the cryptocurrency, although earlier than expected. spot Bitcoin ETF approvals in the United States by early 2024.
According to the investment consultancy Byte tree Bitcoin investment fund holdings just reached a new all-time high of 863,434 BTC tokens.
ByteTree founder Charlie Morris said it was no surprise that “the price has been so strong lately.”
The approval of spot Bitcoin ETFs in the United States is expected to open the door to substantial capital inflows from institutions as they begin to allocate a portion of customer wealth to BTC, which should act as a powerful tailwind for the price, hence the recent pump. , which was driven by pioneers who were trying to get ahead of all these institutional influxes.
Perhaps because some investors had bought it on the assumption that it would be the only cryptocurrency to gain ETF approval in the United States next year.
Well, if Ethereum spot ETFs are also on the horizon, that makes Bitcoin spot ETFs a little less special, hence why some investors may have sold their BTC and bought some. ETH on Thursday news.
But sentiment in the Bitcoin market remains very strong at present, with recent macroeconomic developments (falling US yields and rising US stock prices as investors bet the US rate hike cycle is over) adding to the tailwinds.
Is the bull market back?
Analysts at JP Morgan recently warned that the rally in Bitcoin and the broader crypto market appears overdone.
The halving and approval of spot Bitcoin ETFs are both already priced in, analysts recently argued, warning that BTC risks experiencing a “buy the rumor/sell the fact” reaction to both events.
But the vast majority of other analysts remain convinced that further prospects for growth are to be expected.
Matrixport recently called for Bitcoin to reach a price of at least $42,000 during one-time Bitcoin ETF approvals in the United States.while other analysts have highlighted the $48,000 level as next major bullish price target.
Trading.biz analyst Cory Mitchell went even further in a note shared with members of the crypto press earlier this week, predicting that Bitcoin could reach new all-time highs as soon as mid-2024, a rally 85% from current levels.
“Bitcoin bull trends tend to move quickly once they begin, often moving several hundred percent in less than a year,” he noted, calling this stage of the market “the phase acceleration”.
The “really big gains” historically come a year and a half after the price of Bitcoin bottomed, Mitchell explained, which suggests a rise around mid-2024 as BTC hits its lowest level for the last time in November 2022.
“In 2013, Bitcoin rose 1,200% in about 100 days… in 2017, it rose 1,900% in just under a year… at the end of 2020, it rose 400% in about 140 days” .
Even if the JP Morgan analysts are right and we see a pullback, with Bitcoin currently up around 125% year to date, BTC certainly appears to be back in a bull market.
Price Prediction – What’s Next for Bitcoin (BTC)?
BTC market dips remain likely to be bought with support around $36,000 looking particularly strong.
Assuming the bullish momentum continues, the next major upside targets include the psychological level of $40,000, April 2022 highs at $43,000, and March 2022 highs around $48,000.
Going forward, crypto traders will remain fascinated by news related to US spot crypto ETFs, but upcoming macroeconomic events, such as US Consumer Price Index inflation next week and October retail sales figures, could further boost the crypto rally if they trigger a further pullback. The Fed tightens its bets.