Amid the speculation around the US Securities and Exchanges Commission’s (SEC) spot Bitcoin ETF approval, institutional buyers appear to be heavily accumulating Bitcoin (BTC) ahead of the expected deadline of January 10, 2024.
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US Buyers Accumulating Bitcoin
When looked at the difference in BTC price on crypto exchanges Binance and Coinbase, there is an increasing gap in recent times. This could be a clear sign of aggressive buying activity from buyers from the United States. The range fluctuates from a few dollars to more than $50, analysts on CryptoQuant said, adding that this is a sign of “robust buying activity.” It remains to be seen if the BTC buying activity intensifies in the lead up to the spot Bitcoin ETF approval deadline.
Meanwhile, MicroStrategy, the world’s largest institutional holder of Bitcoin, continues to accumulate BTC amid hype around the launch of spot Bitcoin ETF. Earlier, CoinGape reported that the company made a purchase of $615 million worth of Bitcoins, adding on to its bag worth around $6 billion. The firm holds as many as 189,150 BTC as of the last week of December 2024.
BTC Price Correction
In this context, Arthur Hayes, co-founder of BitMEX, warns of a potential correction in BTC Price owing to the US dollar liquidity dynamics. Predicting a chance of 40% correction, Hayes priced in the US Federal Reserve’s interest rate cuts in 2024, CoinGape reported. On the other hand, Standard Chartered bank predicted that the BTC price could touch the six figure mark by the end of 2024. At the halfway mark into 2024, the crypto market would have witnessed two of the most important milestone events in spot Bitcoin ETF approval and the Bitcoin Halving, both of which are expected to be bullish for the top cryptocurrency.
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