- On January 2nd, Tuesday, the price of Bitcoin (BTC) made a strong comeback, rising by over 7% and surpassing $45,000.
- As Bitcoin dominance indicator dropped to 50.3%, there are signs that the altcoin season might be imminent, potentially revitalizing the entire crypto market.
- Despite Tether minting activities being a sign of fiat to crypto inflow, the ongoing price rally signals a scarcity of sellers, pushing prices higher.
Bitcoin’s price made a strong comeback on the first trading day of the week, surpassing $45,000: When will the altcoin rise begin?
Bitcoin Price Surpasses $45,000
On January 2nd, Tuesday, the price of Bitcoin (BTC) made a strong comeback, rising by over 7% and surpassing $45,000. Everyone is likely anticipating the approval of the spot Bitcoin ETF, expected to occur around January 10.
According to the latest report by Matrixport, the Bitcoin funding rate remains at high levels, indicating that crypto traders continue to maintain a strong bullish outlook and expect the approval of the Bitcoin ETF in the near future. As Bitcoin dominance indicator dropped to 50.3%, there are signs that the altcoin season might be imminent, potentially revitalizing the entire crypto market.
Despite Tether minting activities being a sign of fiat to crypto inflow, the ongoing price rally signals a scarcity of sellers, pushing prices higher. Currently, the funding rate has reached a new peak at 66%, indicating that long positions are paying shorts a 66% annual fee to maintain their positions.
This dynamic in the futures market suggests a squeeze on the spot market, and there are expectations of pushing Bitcoin beyond the $50,000 target set for January 2024. Some speculations even suggest that Bitcoin could surpass $50,000 by the end of this week.
BTC Miner Activity Increasing
Many market analysts are already moving past the anticipation of the Bitcoin ETF approval, thinking it might be a ‘sell-the-news’ event. Some market analysts note that miner activity already surged during the past week.
According to the Matrixport report, Bitcoin mining companies are inclined to limit supply around upcoming halving cycles expected in April 2024. This strategic move could contribute to a potential supply shortage in the market. The report emphasizes the possibility of a surprising Bitcoin price increase for the next year.
Matrixport highlights strong rallies in BTC prices in line with historical trends, coinciding with the U.S. election cycles. The average return for BTC in 2020, 2016, and 2012 was an impressive +192%. The report speculates that this pattern could propel Bitcoin towards the previously set $125,000 target.
This target, established in July 2023 based on Matrixport’s ‘one-year-new-peak’ indicator, is further paralleled to the strong performance of U.S. stocks in U.S. election years, noting only two down years (2008 and 2000) since 1960.
