Bitcoin surges past $43k, triggers $40m liquidations
Bitcoin (BTC) recently surged past $43,000, resulting in $40 million of Bitcoin being liquidated out of a total of $110 million worth of cryptocurrencies being liquidated within the last 24 hours. This rise occurred after BTC had hovered around $42,000 for days.
The total market capitalization of cryptocurrencies has reached nearly $1.75 trillion. While the overall market is growing, Bitcoin’s dominance remains steady at around 52.5 percent.
Altcoins like Solana (SOL) and Cardano (ADA) have shown positive momentum, with their prices increasing by six percent and eight percent, respectively, as per CoinGecko’s data.
This development indicates increasing investor confidence and institutional acknowledgment of Bitcoin as a viable investment. American financier Anthony Scaramucci, representing institutional investors, expects a bright future for Bitcoin.
Scaramucci predicts that Bitcoin will reach new all-time highs, surging up to $170,000 in the coming months. He explained in a recent interview with Scott Melker that a jump of over 300 percent would not be surprising after the halving event in April, where the amount of new Bitcoin entering circulation every ten minutes will be halved from 6.25 BTC to 3.125 BTC.
Scaramucci based his prediction of a potential significant rally on historical patterns. Data suggest that Bitcoin tends to reach a peak of a four-fold increase in value during the halving.
“You discussed my $170,000 prediction… That’s a data-dependent prediction. Return and have a look at Bitcoin halving cycles. The day that Bitcoin halves, multiply it through 4 18 months later and it’s been uncanny that that’s been the cost of Bitcoin,” Scaramucci said.
After each halving event, Bitcoin has experienced a surge. For instance, around six months after the second halving in 2016, Bitcoin surpassed $1,000. A similar bullish trend occurred in 2020 when Bitcoin reached a new all-time high.
“Go back and look at Bitcoin halving cycles. The day that Bitcoin halves, multiply it by four [and] 18 months later and it’s been uncanny that that’s been the price of Bitcoin,” Scaramucci said.
Scaramucci’s calculations, using cautious estimates, suggest a remarkable future value for Bitcoin, ranging from $200,000 to $240,000. However, his more optimistic long-term prediction envisions Bitcoin reaching about $400,000, potentially reaching half of gold’s market capitalization.
Scaramucci said that if Bitcoin is valued at $35,000 at halving, it could potentially reach $200,000. If it trades at $60,000, the price could soar to $240,000.
At the time of writing, Bitcoin is priced at $43,180 per coin, showing a 3.4 percent increase in the last 24 hours and a 7.8 percent rise over the past week, according to CoinGecko.
Tether’s massive USDT minting spurs Bitcoin surge
Bitcoin’s jump to above $43,000 occurred after Tether had minted one billion USDT, contributing to a total of 13 billion USDT minted since October 20, 2023. At the start of 2024, Tether minted 2 billion USDT in just 10 days, following a previous minting of 1 billion USDT. In the past, substantial Tether minting has often correlated with notable Bitcoin price surges.
According to crypto analyst Tone Vays, Bitcoin’s consolidation suggests an underlying momentum. Vays highlighted an ascending triangle formation on the weekly BTC chart, a pattern that typically precedes a notable upward price movement.
Vays predicts Bitcoin could rise to $48,628 but cautions about a potential decline, especially with the U.S. Securities and Exchange Commission (SEC) approving a spot Bitcoin ETF on January 10.
“Bitcoin is forming an ascending triangle. This is setting up a huge pump next week to $48,628. And if we get a huge pump next week on SEC news, I’m expecting a big pull back right after,” Vays said.
Bitcoin’s value rise is not solely attributed to Tether. The wider demand for Bitcoin is evident in BlackRock’s successful spot Bitcoin ETF, the first to exceed $2 billion in assets, holding over 52,000 BTC.
Angel Marinov is the Managing Editor at Coinlabz. With extensive knowledge of crypto payments and blockchain use cases, Angel is a trusted source of accurate and timely information
