In recent weeks, Bitcoin (BTC) has experienced an astonishing 25% increase in value, primarily during U.S. trading hours, as per data from Matrixport, a prominent player in the world of cryptocurrency services.
Markus Thielen, Head of Research at Matrixport, emphasizes the significance of this surge, attributing it to the mounting enthusiasm among U.S. investors and institutional players who are eagerly preparing for the launch of a U.S.-listed spot Bitcoin Exchange-Traded Fund (ETF). This development is poised to have a substantial impact on the cryptocurrency landscape.
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Global Crypto Landscape
Despite Asia being home to the largest number of crypto users, a staggering 260 million, it’s the purchasing power of U.S. traders and institutions that truly shines, underscoring their substantial influence in the crypto realm.
Matrixport’s report also delves into the technical aspects of Bitcoin’s recent gains, highlighting the robust upward momentum that has propelled Bitcoin above the $30,000 resistance level.
Cautious Optimism
Nonetheless, the report issues a note of caution regarding a possible slowdown in this bullish run. It advises traders and investors to remain vigilant, suggesting that Bitcoin has the potential to breach the $45,000 mark by year-end, based on a well-established investment strategy that has yielded favorable results this year.
Bitcoin’s Present Situation
As of the latest update, Bitcoin is in a consolidation phase, trading within a contracting triangle pattern on the 4-hour chart. A breakout from this pattern could potentially push the cryptocurrency beyond the $35,000 mark, encountering resistance at $37,000 and $40,000.
Conversely, a breakdown might test the $30,000 support level, with further potential declines targeting the $28,000 threshold. Presently, Bitcoin is valued at $34,042.
Playing in the Trillions
Zooming out to the broader cryptocurrency market, the total market capitalization has surged past the $1.25 trillion mark. This market has witnessed an impressive 99% increase in trading volume, totaling $92 billion across various platforms. Interestingly, Bitcoin, with its 53% dominance, continues to outperform even the most volatile of altcoins.
