Bitcoin Approaches $40,000: Analysts & On-Chain Metrics Show Bullish Trend

• Bitcoin Nears $40,000 Peak: A Closer Look at the Surge
• Bitcoin's Path to $40,000: Post-Powell's Speech
• Market Predictions for Bitcoin
• The Role of Traditional Financial Institutions
• Grayscale's Preparation for Bitcoin ETF
• Bitcoin's Bullish On-Chain Indicators
• The Profitability of Bitcoin Addresses
• Top Crypto Platforms in the US | December 2023

Bitcoin Nears $40,000 Peak: A Closer Look at the Surge

The Bitcoin$42,260 -0.64% market has witnessed a significant upturn, hitting a yearly peak of nearly $39,900. The upward trend has prompted several market watchers to predict that Bitcoin could soon surpass the significant $40,000 milestone. This recent surge in Bitcoin's value was ignited by a statement from Jerome Powell, the Chairperson of the United States Federal Reserve, indicating a continuous restrictive rate until inflation aligns with their 2% target.

Bitcoin's Path to $40,000: Post-Powell's Speech

Following Powell's address, Bitcoin reached a 19-month high, spurred on by market optimism and speculation about the future direction of the Federal Reserve. A number of analysts have noted this upward trend, suggesting that Bitcoin could not only breach the $40,000 mark but also set sights on reaching $50,000.

Market Predictions for Bitcoin

Markus Thielen, of Matrixport, in a communication to investors, outlined a 90% probability of Bitcoin reaching $45,000. He ascribed this prediction to market positivity and the potential approval of a spot exchange-traded fund (ETF).

As the year approaches its end, we remain bullish. Historically, Bitcoin tends to rally by +12% in December, suggesting a plausible end-of-year target of $45,000 for Bitcoin, Thielen stated.

The Role of Traditional Financial Institutions

Over recent months, established financial institutions, such as BlackRock, have been seeking a spot Bitcoin ETF from the US Securities and Exchange Commission (SEC). This development, coupled with the SEC's active engagement, stokes anticipation of a near-future Bitcoin ETF approval.

Grayscale's Preparation for Bitcoin ETF

Significantly, Grayscale is gearing up for such approval by appointing John Hoffman, formerly of Invesco, to spearhead its Bitcoin ETF initiatives. Alongside this, the discount on Grayscale's Bitcoin Trust to its net asset value has seen a notable reduction, according to data from Coinglass.

Bitcoin's Bullish On-Chain Indicators

Fuelling the bullish sentiment is the on-chain data, which shows a substantial withdrawal of Bitcoin from exchanges. Glassnode reports that more than 37,000 BTC have been relocated from exchanges since November 17th. This trend is often interpreted as a bullish signal, suggesting a shift towards long-term holding and reduced selling pressure.

Furthermore, the recent price surge has brought Bitcoin holders to their most profitable levels since December 2021. Data analytics provider IntoTheBlock underlines that over 80% of Bitcoin addresses are now holding at a profit.

The Profitability of Bitcoin Addresses

Over 80% of Bitcoin addresses currently hold at a profit, a high not seen since December 2021 when prices exceeded $50,000 per Bitcoin, according to IntoTheBlock. Since these data were recorded, Bitcoin has seen additional gains, suggesting an even larger percentage of profitable addresses.

Top Crypto Platforms in the US | December 2023

Disclaimer: Following the Trust Project guidelines, the source is committed to unbiased, transparent reporting. This article aims to provide accurate, timely information. However, readers are advised to independently verify facts and consult with a professional before making any decisions based on this content.

Edited by Jonathan Stoker