Bitcoin ETF buzz sends BTC price to $45K as open interest rises
Bitcoin (BTC) revisited $45,000 around Wall Street on January 8 as exchange-traded fund (ETF) buzz injected fresh volatility.
Bitcoin ETFs Draw New Liquidity Alert
Data from Cointelegraph Markets Pro and TradingView tracked around 3% daily BTC price gains.
The biggest cryptocurrency buying spree was renewed as traders raised open interest on what one review termed “speculation.”
ETF speculators won't be happy if the approval doesn't come today, but word on the street is Wednesday may be the day,” the exchange-traded funds index continued on X (formerly Twitter).
“This means you have to be ready for another potential liquidation. Whales want to take out weak hands and buy low.”
Material indicators referenced last week's liquidations, which eliminated a lot of open interest by unwound long BTC positions.
At the time of writing, Bitcoin futures open interest stood at 407,400 BTC, more than 8,000 BTC per day, according to statistics resource CoinGlass.
In response, financial analyst Tedtalksmacro questioned whether the rate of increase predates the previous ETF decision.
CoinGlass itself suggests asking for liquidity above the spot price, showing what could happen if the market moves higher too quickly.
pic.twitter.com/JLkacnhQek
— CoinGlass (@coinglass_com) January 8, 2024
The price of BTC is going down
Meanwhile, well-known names in the Bitcoin community are maintaining a cautious tone despite growing confidence that the EFF will launch.
Related: 100 Days Halving – 5 Things to Know in Bitcoin This Week
Hodlonaut, a Bitcoin development service consulting firm, has observed more reliable price movements to come around the decision.
“I'd be surprised if there aren't more price gouging associated with ETFs,” he told X subscribers.
“In the past, when people agreed so much on recent price action, there were carpets of expectations. Don't trade. Low time selection.
James Van Straten, research and data analyst at crypto insights firm CryptoSlate, meanwhile, spies a 1% price drop in gold as a seasonal phenomenon, with market participants likely to turn to bitcoin.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
