- Despite Bitcoin experiencing volatile and intermittent trading over the past few days, the token has still recorded over a 50% increase since mid-October, sparking calls for a new crypto bull market.
- Much of the momentum behind digital assets comes from expectations that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF).
- With the decision on the spot Bitcoin ETF approval and no major economic indicators other than inflation data on Friday, the crypto market is currently facing a lack of catalysts heading into the holiday season.
Bitcoin and cryptocurrencies are experiencing gains on Thursday despite a lack of catalysts: Is a consolidation period starting?
Bitcoin and Cryptos Rise on Thursday
Bitcoin and other cryptocurrencies gained on Thursday, despite traders remaining optimistic about digital asset prices until the end of the year. Bitcoin’s price increased by 3% in the last 24 hours, surpassing $44,000, marking its highest level in ten days. However, it still fell just below the close peak of around $44,500, the highest since April 2022. Despite Bitcoin experiencing volatile and intermittent trading over the past few days, the token has still recorded over a 50% increase since mid-October, sparking calls for a new crypto bull market.
Rachel Lin, CEO of the SynFutures trading platform, said, “We’ve seen a sideways trend this week,” and added, “Overall, the market is inevitably in a consolidation stage following a big uptrend as we saw in November.”
Much of the momentum behind digital assets comes from expectations that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF) – potentially in early January. The approval of such a fund is expected to bring a fresh wave of investor interest at a time when the token supply is at historically low levels, potentially driving prices even higher.
Expectations that the Fed will lower interest rates several times next year also helped and, against the backdrop of a macro environment supporting all risky assets, boosted Bitcoin parallel to the Dow Jones Industrial Average and the S&P 500.
Lack of Catalysts in the Bitcoin Market
With a decision on a spot Bitcoin ETF beyond New Year’s Eve and no major economic indicators other than inflation data on Friday, the crypto market is currently facing a lack of catalysts. Nevertheless, traders continue to maintain their optimism about Bitcoin’s gains, with the struggle in the crypto derivatives market showing a strong bullish sentiment and bets indicating that the token could surpass $50,000 in the coming weeks and months.
“The buy ratio remains skewed, supporting the buys. All top 10 options with the highest open interest continue to be buys, indicating that the market expects upside potential rather than downward risk,” said Lin. In the options market, calls represent bets on price increases, while puts are bets on price decreases.
Beyond Bitcoin, Ether, the second-largest crypto, rose by 2% to $2,260. Cardano increased by 3%, while Polygon rose by 2%. Meme coins were also strong, with Dogecoin rising by 2% and Shiba Inu by 2%.
