The performance of Grayscale’s Bitcoin Trust (GBTC) has affected market sentiment. Since January 11, substantial withdrawals totaled $6.33 billion, with $101.6 million occurring on February 8. Despite this, analysts remain optimistic about Bitcoin’s future performance. 10X Research’s Markus Thielen predicts short-term targets of around $48,000, fueled by historic gains during Chinese New Year festivities. In the mid-term, Thielen forecasts Bitcoin to reach $52,000 by March, completing the fifth wave of its uptrend.
The increase in Open Interest (OI) for Bitcoin Futures highlights the market’s bullishness even more. In the past day, OI has increased by 5.51%, hitting 444.81K BTC, or $20.74 billion, according to CoinGlass data. Notably, OI has increased significantly on exchanges like CME and Binance, an indication of growing optimism about the future performance of Bitcoin.
Bitcoin Rally and Market Optimism
Although Bitcoin saw a significant 6% increase in just one day, hitting over $47,700, it is still below its peak of nearly $69,000 in 2021. The surge of cryptocurrencies coincided with stock market records and strong demand for exchange-traded funds (ETFs), which were introduced earlier this year. As a result, the cryptocurrency recovered from a significant selloff that saw its price plummet to as low as $39,000 last month, surpassing its end-of-day top of over $47,000.
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