Bitcoin crosses crucial $38,000 mark, ETH gains 2.6%

Crypto market overview: Today, Bitcoin has crossed the crucial mark of $38,100. This price surge may be attributed to the recent news of MicroStrategy (MSTR) acquiring almost 16,130 BTC, valued at around $608 million in November. On the other hand, ETH has also gained 2.67 per cent to reach closer to the $2,100 mark. 

Reflecting a similar sentiment, the Crypto Fear and Greed Index has continued to be in the greed section, staying above 70 points. The index is likely to move up as Bitcoin has crossed the crucial mark of $38,000. 

While talking to Republic Rajagopal Menon, Vice President, WazirX, underlined the factors driving crypto market this week. Menon said, “In the face of market fluctuations, Bitcoin maintains stability at $37,986, registering a modest 0.33 per cent increase. The 13th entrant in the Bitcoin ETF race and updates from BlackRock fuel excitement in the crypto sphere. Investors, eyeing a $40,000 milestone per CME Bitcoin futures, foster optimism amid evolving market dynamics. Yet, looming regulatory concerns pose a threat, particularly linked to illicit financial activities.”

“Failure to breach the $38,050 resistance zone could initiate a decline, with immediate support near $37,600 or the 100-hourly SMA. Technical indicators signal a bullish trend, with the MACD gaining momentum. Key support levels include $37,600 and $37,450, while resistance stands at $38,050, $38,400, and $39,500,” added Menon. 

Talking about the rangebound movement of Bitcoin in the last 24 hours, Parth Chaturvedi, Investments Lead, CoinSwitch Ventures, said, “After ending November with gains of 10 per cent, Bitcoin has been trading rangebound since yesterday. The buying pressure on BTC continues to surpass the selling pressure, suggesting that investors’ confidence is sustained and optimistic. Additionally, institutional participation continues to rise, with the latest being MicroStrategy's 10 per cent increase of its BTC holding, translating into approx. $600 million worth of BTC. MicroStrategy's total BTC holdings include over 1,74,000 BTCs worth over $5.2 billion.” 

“While key narratives involving the suspected approval of spot BTC ETF applications in the pipeline are sustaining investor sentiments, any new developments within the space can determine BTC’s future performance,” Chaturvedi added. 

Sudeep Saxena, Co-founder, Coin Gabbar, highlighted the key developments in the BlackRock application. Saxena said, “BlackRock, the largest global asset manager, recently engaged in another meeting with the US Securities and Exchange Commission (SEC) regarding its application for a spot Bitcoin exchange-traded fund (ETF). The company has put forward a "revised in-kind" model for the ETF, aiming to address the SEC's concerns. It's worth noting that the regulator has expressed a preference for spot Bitcoin ETFs to adopt the cash creation method.”

Shivam Thakral, CEO of BuyUcoin, said, “The crypto market cap swelled to $1.44 trillion with Bitcoin breaching the $38,000 mark. Ethereum, which normally follows the BTC trajectory, jumped over 2.5 per cet to touch the $2100 mark. Crypto heavyweights like BTC and ETH are riding the ETF wave as fresh capital continues to enter the crypto market anticipating ETF approval in early 2024. If the SEC approves Bitcoin ETF, the value of one Bitcoin is expected to touch $100,000 by the end of 2024, as predicted by the banking giant Standard Chartered.”