Bitcoin price breaks key $44,000 level

Bitcoin price has skyrocketed since Saturday and has maintained its bullish momentum, shooting up to its highest level in over a year and a half. Crypto markets surged in anticipation of the approval of crypto spot exchange-traded funds (ETF). Approval expectations of spot ETFs by the Securities and Exchange Commission (SEC) are boosting crypto markets. BlackRock and other institutions have applied for a Bitcoin ETF, which would bring more institutional and retail money into crypto markets. The SEC has been hesitant regarding the future of Bitcoin ETFs, delaying the decision. BlackRock has also filed an ETH spot ETF for approval, causing Ethereum prices to surge.

Reports that a date has been set for Bitcoin spot ETF approval between January 5 to January 10 drove Bitcoin price up. In addition, rumors that SEC representatives have met with BlackRock and Grayscale boosted the bullish market sentiment. The hype created over the news boosted crypto markets and most major cryptocurrencies gained strength over the weekend.

Bitcoin price surged on Tuesday, breaking the key $44,000 level for the first time since April 2022. If BTC price declines, support can be found near $37,500, while further resistance may be encountered near $45,000. 

Ethereum price continued to rise on Tuesday, testing the $2,300 level resistance but not managing to break through. If Ethereum's price declines, it may encounter support near $1,980, while if it increases, resistance may be encountered near $2,300.

Increases in central banks’ interest rates are putting pressure on risk assets. Most major central banks, however, are hitting pause on rate hikes, propping up crypto markets. FOMC members have voted to keep interest rates unchanged at a 22-year high within a target range of 5.25% to 5.50%. The Fed’s decision to pause rate hikes has increased risk appetite, boosting cryptocurrencies, especially since markets anticipate that the Fed has reached its rate ceiling. 

Fed Chair Jerome Powell delivered a speech that was more dovish than anticipated last week, hinting that the Fed has completed its tightening cycle. Markets pondered Powell’s speech over the weekend and renewed risk sentiment propped up cryptocurrencies.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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