Title: Bitcoin Nears $40,000 Amid Speculation and Optimism
H2: Bitcoin’s Strong Performance in 2022
Bitcoin’s chances of hitting $40,000 are top of mind for crypto speculators as they head into the final stretch of a year during which the largest digital asset more than doubled in price. The token has rebounded about 130% over the past 11 months from 2022’s crypto rout, outstripping investments like stocks or gold. Hopes for Federal Reserve interest-rate cuts next year, and expectations that the US will allow its first spot Bitcoin exchange-traded funds, together created a potent elixir.
H3: Challenges and Optimism
The rally has weathered a US crackdown that put Sam Bankman-Fried behind bars for fraud at FTX and handed top crypto exchange Binance and its founder Changpeng Zhao rap sheets and big fines. However, for optimists, the drive to curb questionable practices and the recent flurry of ETF applications point to a maturing industry and the potential for wider crypto adoption.
In order to reach $40,000, approval for the spot Bitcoin ETF is key, said Fiona Cincotta, senior financial markets analyst at City Index Ltd. The token recently lost some steam, in part as big swings in equities and currencies attracted the attention of investors. Bloomberg Intelligence expects a batch of US spot Bitcoin ETFs to win Securities & Exchange Commission approval by January. A reset in rate bets or unexpected snarls for the ETFs could yet derail Bitcoin, but for now sentiment is upbeat.
H3: Key Trends and Caution
Bitcoin rose 1% to $38,121 as of 2:13 p.m. in Singapore on Friday. Smaller tokens like Ether also gained. Bitcoin’s weekly relative-strength index, a momentum gauge, closed above 75 last week. While readings above 70 are viewed as signaling “overbought” conditions, over the past decade, the token climbed an average 15% over the subsequent month after printing a weekly RSI of more than 75 — an advance that would take it well past $40,000.
The technical indicator MACD flags ebbing momentum of late, displayed by the span of bars showing negative readings. At the same time, the Bitcoin rally has struggled to push conclusively past $38,000. The pattern of positions in the Bitcoin options market hints at a $37,000 to $40,000 trading range in December.
H3: Expert Opinions
Michael Novogratz, founder of Galaxy Digital Holdings Ltd., on Wednesday said Bitcoin a year from now may reach its 2021 peak of almost $69,000. Tony Sycamore, a market analyst at IG Australia Pty, expressed optimism for the possibility of Bitcoin passing $40,000, either following the ETF announcement or as risk assets resume their run higher into year-end.
As Bitcoin nears the $40,000 mark, the overall sentiment for the cryptocurrency is upbeat, creating an atmosphere of excitement and anticipation for what’s to come.
I have been featured in numerous publications, both online and offline, and am a regular speaker at industry events. I am also the founder of Crypto University, an online educational platform that helps people learn about cryptocurrencies and blockchain technology. In addition to my writing and teaching career, I am also an active investor in the cryptocurrency space. I have made investments in some of the leading projects in the space, and my portfolio has outperformed the market by a wide margin