• Bitcoin has surged to $19,000 for the first time since October, going beyond its low trading range after FTX’s collapse.
• The move has many in the crypto world speculating a new bull market, though some believe it is a bull trap.
• Data from Coinglass shows that the crypto market has experienced $382 million worth of liquidations this week.
Crypto investors and traders have been abuzz with the news that Bitcoin is back above $19,000, a price level it has not seen since before FTX’s implosion in October. Bitcoin began the week trading at $17,911, however, it experienced some volatility around midweek when the December CPI inflation rate clocked in at 6.5%. On Thursday, at around 17:35 UTC, Bitcoin pumped by around $1000, and since then the asset has maintained its elevated price level. By 19:47 UTC, Bitcoin had reached a new high of $19,036, before pulling back to $18,864 at the time of writing.
The surge in Bitcoin’s price has many in the crypto world speculating that a new bull market is underway, though some are more cautious, believing that the surge could be a bull trap. Data from Coinglass shows that the crypto market has experienced $382 million worth of liquidations this week, suggesting that the rise in prices could be fragile in the short term.
The current price surge of Bitcoin could be attributed to a number of factors, including institutional demand, a shift in investor sentiment, and the anticipation of further stimulus from the new Biden administration in the US. Investors are also likely feeling more confident following news that the US SEC has approved a Bitcoin ETF, which is expected to launch in early 2021.
Overall, the current Bitcoin price surge marks a new milestone in the asset’s bull market, and could indicate further gains ahead. However, given the volatility of the crypto markets, it is important to exercise caution and do one’s own research before investing.