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Bitcoin is back. Its price surged to the year-to-date high of $37,000 as demand continued rising. BTC price surged by more than 137% from the lowest point in 2022. As a result, the total market cap of all cryptocurrencies is nearing $1.4 trillion. This trend has led to more upside for most cryptocurrencies like OKB, Huobi Token, Chainlink, Cardano, and Solana.
Why Bitcoin price is soaring
There are several reasons why Bitcoin price is surging. First, the most recent news was a Bloomberg report that said that the potential Bitcoin ETF approval window had opened. The window for the approval of Blackrock’s, Franklin Templeton, and Invesco opened on Thursday. The analysts expect that the approval will happen by January 10th.
Second, Bitcoin price is soaring as the futures open interest surges. Data shows that the open interest in CME has jumped to 100k BTC for the first time on record. In total, Bitcoin futures open interest surged to a high of $15.9 billion on Thursday, the highest point since April 7th last year. Most of this open interest is in Binance, CME, OKX, and Deribit.
Third, BTC price has surged because of the Federal Reserve. In its decision last week, the bank left interest rates unchanged between 5.25% and 5.50%. It also left the door open for more rate hikes. However, most analysts believe that the bank will not hike rates again.
As a result, American stocks have surged while bond yields have retreated. The 10-year and 30-year bond yields dropped to 4.54% and 4.6%, respectively. The spread between the 10-year and 2-year has dropped to minus 44.58. In most periods, Bitcoin does well when bond yields are slipping.
Further, Bitcoin price has jumped because of the expectations of halving, which will happen in April. Bitcoin does well ahead of the halving event since it reduces the supply.
Most importantly, the coin has jumped because it has confirmed that it is a real asset. It has survived numerous major events in the past decade. Some of the top events were the collapse of Mt. Gox, FTX, Terra, Three Arrows, and Celsius. It has also done well in this high-interest rate environment.
Altcoins to benefit
Bitcoin’s rally could lead to more upside for other altcoins. Chainlink (LINK) price jumped to a high of $7.33, which was about 50% from the lowest level in June of this year. The coin will likely benefit because as other cryptocurrencies bounce back. Also, it will benefit because of the growth of tokenization and decentralized finance (DeFi).
The other tokens set to benefit are centralized and decentralized finance (DeFi) tokens. Tokens like OKB, Huobi Token (HT), and Uniswap (UNI) will benefit as demand for cryptocurrencies jump. Most of these exchanges have seen higher volume in the past few weeks.
Other altcoins that could benefit are Tron, Solana, and Cardano. These tokens are some of the biggest players in the crypto industry. Indeed, Tron’s (TRX) has jumped to a high of $0.10 and is hovering near the highest point since 2021.
Similarly, Solana and Cardano prices have soared by over 50% from the lowest point this year. This trend will likely continue surging in the coming months if the Bitcoin rally gains steam.
Watch here: https://www.youtube.com/embed/l-N1Mb3xTi8?feature=oembedThe post BTC pattern is good news for OKB, Huobi Token, Cardano, Chainlink, Solana appeared first on Invezz
