Bitcoin surged to a four-week high, nearing $45,000 on Thursday as U.S. equity indexes reached record highs. After dropping to as low as $42,700 on Wednesday, Bitcoin saw a nearly 5% increase to $44,800, marking its highest point since January 11, according to CoinDesk data. LMAX Digital stated in a morning note that “Technically speaking, bitcoin has broken out of a range and could be looking for a push to a fresh yearly high through $50,000.” Laurent Kssis, a crypto ETP specialist at CEC Capital, added that the surge in bitcoin was driven by leverage, as the open interest on BTC contracts increased by $982 million in less than 24 hours. However, he remained cautious and suggested that the $40,000 level could be tested over the weekend.
Kssis also stated that “overall liquidation indicates a further small appreciation for BTC which will break the key 45k support barrier.” Ether also experienced gains, rising 3% to reach a two-week high after asset managers Ark Invest and 21Shares made amendments to their joint spot ETH exchange-traded fund (ETF) filing. As a result of these developments, The CoinDesk 20 rose by 4%. These positive movements in both Bitcoin and Ether reflect the growing interest and investment in the cryptocurrency market, driven by various developments and changes in the global financial landscape.
The surge in Bitcoin’s price can be attributed to several factors, including the record highs in U.S. equity indexes, the increase in open interest on BTC contracts, and the amendments made to the ETH exchange-traded fund filing by Ark Invest and 21Shares. These factors have created an optimistic outlook for digital currencies among investors and have contributed to the positive momentum in the cryptocurrency market. The rise in Bitcoin’s price to a four-week high, approaching $45,000, and the increase in Ether’s value to a two-week high indicate a growing interest and confidence in the potential of cryptocurrencies as an investment asset.
Despite the positive movements in the cryptocurrency market, some caution remains, as mentioned by Kssis. The potential for a test of the $40,000 level over the weekend suggests that there could be some volatility in the near future. However, the overall outlook for Bitcoin and Ether remains positive, with the potential for further gains in the coming weeks. As the global financial landscape continues to evolve, the cryptocurrency market is likely to see increased investment and interest from both institutional and retail investors, driving further growth and development in the digital asset space.