Bitcoin Prediction as Bulls Push Price Towards New Yearly Highs – Can BTC Hit $40,000 Soon?
Bitcoin (BTC) is pumping on Wednesday, as mass liquidations of leveraged traders’ positions continue to drive large swings in the market.
The BTC price was last trading around $37,700, up more than 6% on the day and around 7% versus Tuesday’s lows just above $35,000, with the latest market pump taking out leveraged short futures positions worth nearly $100 million so far for the day, according to Coinglass.
Bitcoin’s latest short squeeze comes a day after its brief dip to $35,000 wiped out leveraged long BTC positions worth close to $300 million.
While short position liquidations are certainly playing a role in Bitcoin’s latest pump, aggressive dip-buying following the BTC price’s slip earlier this week is likely playing a larger role.
US inflation and retail sales data released this week both strongly support the narrative that the US Federal Reserve’s tightening cycle is over and that a rate-cutting cycle is around the corner, with US equity and government bond prices pumping and the US Dollar dumping as a result.
Bitcoin has in recent years performed best in an environment of falling stock prices, falling bond yields (yields fall when bond prices rise) and a declining dollar, so macro has been a major tailwind for the cryptocurrency this week, aiding its strong rebound from intra-week lows.
Meanwhile, optimism regarding the expected upcoming spot Bitcoin ETF approvals in the US remains palpable, adding to the reasons why investors remain eager to buy short-term dips in the BTC market.
And a still elevated gold price suggests that demand for safe-haven assets also remains strong as geopolitical tensions in the Middle East simmer amid Israel’s ongoing ground incursion into Gaza – Bitcoin has increasingly been viewed as a
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