Bitcoin price rallies to $44,000 as Spot BTC ETF deadline looms

Bitcoin whale wallets increased as anticipation surrounding the Spot BTC ETF rises.
Analysts note that Bitcoin’s Relative Strength Index hit its most bullish level since the BTC price rally started on October 15.
Bitcoin price could hit $45,000 if the two bullish signals remain favorable,according to experts at Santiment.

Bitcoin price climbed back above $44,200 on Thursday, the highest level in ten days.. The latest spike in BTC price is supported by optimism surrounding the approval of a Bitcoin Spot ETF in the US.

Bitcoin price rally has led to an increase in Bitcoin whale wallets, or these addresses that hold 1,000 or more in Bitcoin, after a two-week decline. Analysts at crypto intelligence tracker Santiment said that Bitcoin price is likely to hit the $45,000 level.

Also read: Solana surpasses XRP as fifth largest cryptocurrency by market cap, SOL price sustains above $76

Daily Digest Market Movers: Bitcoin rallies alongside increase in whale wallets, Spot BTC ETF optimism

According to Santiment data, Bitcoin’s ongoing price increase is supported by the rising optimism on the Spot BTC ETF approval by the US Securities and Exchange Commission (SEC), the country’s financial regulator.
The number of wallets holding 1,000 Bitcoin or more hit 22,100 on Thursday, reverting a consistent decline in the past two weeks.
Santiment analysts said that Bitcoin's daily Relative Strength Index (RSI) has climbed to its highest level since October 15, when BTC price first started rallying.

#Bitcoin has crept back up as high as $44.2K today, a 10-day high. This latest climb has been aided by #ETF optimism, but more importantly, an increase in whale wallets. 22 100+ $BTC wallets are back on the network after a 2-week decline. Additionally, the asset's

(Cont) pic.twitter.com/xDCvNkjIhf
— Santiment (@santimentfeed) December 20, 2023

The SEC has met with several spot Bitcoin ETF issuers regarding updates on their applications. Bloomberg ETF analyst Jeff Seyyfart has set the odds of Spot Bitcoin ETF approval at 90% before January 10.
Less than a month away from this date, markets are increasingly optimistic about the chances of an approval, fueling broader sentiment in crypto markets.
Spot Bitcoin ETF approval could act as a bullish catalyst for BTC price. The upcoming halving and rising institutional demand for cryptocurrency could also contribute to its rise.

Technical Analysis: Bitcoin price eyes gains

Crypto analyst on X (formerly Twitter) @TraderMayne said that a rally to $45,000 is likely in Bitcoin’s current uptrend. The analyst’s thesis is aligned with Santiment experts’ prediction of BTC price rally to $45,000.

BTC/USDT Perpetual Contract. Source: TraderMayne’s tweet on X

At the time of writing, Bitcoin price is $43,488 on Binance. The asset gained nearly 2% this week.

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.

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