Market leaders Bitcoin and Ethereum have begun to steadily climb this week after a sell-off toward the end of last week. Bitcoin is up 1.31% in the previous 24 hours, while Ethereum is up 2.78%.
Meanwhile, Bitcoin ETF Token is also pushing ahead as market players set their sights on the SEC’s 10 January approval deadline.
A mixture of crypto-related and macroeconomic events have enabled Bitcoin and Ethereum to surge this week.
Toward the end of last week, both Bitcoin and Ethereum suffered a flash crash. This was a concern on many traders’ radars because market funding rates and open interest (OI) were high.
Funding rates represent the premium that traders pay to long an asset vs. shorting it, and open interest measures unsettled futures contracts on an asset. When these rates are high, it represents overleverage and opens the door to cascading liquidations should prices sell-off.
This happened last week, but shortly after, analysts noticed that funding rates and OI had normalized.
Consequently, the market stabilized for the following week, which kicked off with November’s consumer price index (CPI) data released by the Bureau of Labor Statistics on Tuesday. The data showed that inflation slowed to 3.1%, a positive sign for the market’s macro health.
Following this, the Federal Reserve’s Federal Open Market Committee meeting occurred earlier today, with the FOMC press release explaining that the “Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent.”
However, it followed up by explaining, “The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
Analysts took this as a sign that the FED will cut interest rates in 2024, and Coin Bureau suggested this would increase liquidity in risk markets and cause prices to rally.
Consequently, the market reacted positively, causing prices to pump immediately.
Today’s rally propelled Ethereum to spike to $2,312.
Meanwhile, Bitcoin climbed to $43.3K.
Both cryptos suffered another minor flash crash later today amid a security scare regarding various hardware wallets. However, the prices have begun to recover as volatility flattened, and developers addressed the exploit.
Looking ahead, market participants are eagerly anticipating Bitcoin ETF application decisions, with the SEC’s deadline for the first batch on 10 January.
Prominent crypto data analyst firm CryptoQuant anticipates this could inject $1 trillion of new liquidity into the crypto market, with $155 billion going to Bitcoin and the remainder to other projects.
One compelling crypto set to benefit significantly is Bitcoin ETF Token, a new presale that is quickly selling out.
Bitcoin ETF Token is an innovative spin on the prevalent Bitcoin ETF applications, aiming to reward holders as they get approved.
The project has five milestones and will burn 5% of its total supply at each. Moreover, it features a 5% burn tax that reduces by 1% at each milestone, making $BTCETF scarce and incentivizing long-term holding.
It also features a staking mechanism with a 69% APY. This will decrease as more tokens are staked, incentivizing those who buy in early. Moreover, the staking mechanism will encourage users to lock up their tokens, reducing $BTCMTX’s sell pressure and enabling its price to flourish.
Meanwhile, the project boasts a Bitcoin ETF Alerts service that will update users on the latest Bitcoin news directly on its website.
These features provide utility, revolutionary tokenomics and capture crypto’s most impactful-ever trend. Therefore, analysts are considerably bullish, with ClayBro predicting it could 10x and Crypto Boy going even further, suggesting it may 100x.
Meanwhile, investors are also bullish on the project, with the presale raising $4 million in just over one month. The presale has a hard cap of $5.059 million, meaning market participants face their last chance before it launches on exchanges.
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