[Bitcoin ETF craze pushes price back to $45,000 as open interest rises]
Bitcoin rallied back to around $45,000 when Wall Street opened on January 8, as the exchange-traded fund (ETF) trend brought new volatility to the market.
Bitcoin prices rose nearly 3% on the day, according to data from Cointelegraph Markets Pro and TradingView. This growth was interpreted as the result of speculative buying. Trading resource Material Indicators said speculators may be disappointed if the ETF is not approved on that day, with market talk of Wednesday as the most likely day for approval. They warned that the market could come under selling pressure again.
Material Indicators reminds of last week’s liquidation event, which resulted in the liquidation of many leveraged long Bitcoin positions. As of this writing, open interest in Bitcoin futures stands at 407,400 BTC, growing by more than 8,000 BTC daily.
Financial commentator Tedtalksmacro questioned whether this increase in open interest was indicative of early ETF decisions. CoinGlass pointed out that the increase in sell order liquidity may indicate a rapid rise in the market in the short term.
Meanwhile, members of the Bitcoin community are wary of the price volatility surrounding the ETF decision. Hodlonaut, an advisor at The Bitcoin Advisor, said he expects more volatile price moves related to ETFs and recommends not trading but keeping a low time priority.
James Van Straten, research and data analyst at CryptoSlate, observed that a 1% drop in gold prices could be timely given whether market participants are turning to Bitcoin.
