Bitcoin at 19-month highs above $44,000 level

The weakening US dollar, rallying bond prices, falling government bond yields and growing expectations of a Fed rate cut are pushing the price of cryptocurrencies and other risky assets.
Bitcoin's reaction is similar to that of gold.
The largest of the cryptocurrencies has already completely reversed the declines caused by the collapse of Moon/Earth in May 2022.
Macro factors are not the only ones driving sentiment.
Investors await the SEC's decision on Bitcoin ETFs and weigh the chances of another 'halved bull market' in spring 2024.
In this article, in collaboration with the experts at XTB, we will explore the latest Bitcoin news and predictions.
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Check out XTB's offering Bitcoin is rising today along with smaller cryptocurrencies like Solana, Avalanche and Polygon.
Potentially, this could suggest that capital is more interested in Bitcoin itself than smaller, speculative cryptocurrencies.
Dogecoin recently hit a new address record with a non-zero DOGE balance of 5.3 million holders.
Some cryptocurrency speculators are starting to speculate about Solana's potential overtaking of Ethereum, and Santiago Santos of tech firm Web3 ParaFi Capital has put the chance of such a scenario at around 25%.
However, it is difficult to attribute the euphoric increases to anything other than the sudden change in sentiment and 'greed' of investors, who are starting to price in the effect of the planned halving and the impact of the potential acceptance of Bitcoin ETFs in the market .
sector as a whole.
Strong start to December for Bitcoin ByBit Research analysts have highlighted that institutions are looking much more favorably at Bitcoin than other cryptocurrencies.
BTC reserves in institutions' portfolios have doubled since the beginning of the year through the third quarter.
Bitcoin's correlation with gold prices in 2023 is quite high, around 64%.
Statistically, December was the second best month for Bitcoin (after November, but it's worth noting that December's result 'skews' 2017's 95% rally).
However, if one were to average the December result, $44,000 indicates that the price has already risen more than 9% since December 1, leaving little room for the average.
Keep in mind that the capitalization of Bitcoin is now many times higher than in previous years, which makes it more difficult to have dizzying changes similar to those of the 2015-2020 period.
Average Bitcoin returns by month (2015-2023).
The average return for December is 11.5, higher only than that of November.
Source: XTB Research Bitcoin broke above the $42,000 resistance, where we can see the 50.0% Fibonacci retracement Source: xStation5 BITCOIN's correlation with GOLD (gold chart, GOLD) is evident (64% in 2023), but in the short term the two assets can move completely in isolation.
After gold broke above $2150 and dynamically retreated to $2070 an ounce, we witnessed a divergence.
Source: xStation5 How to Invest in Cryptocurrencies with CFDs Investing in contracts for difference (CFDs) on cryptocurrencies has become an attractive option for those who wish to participate in the cryptocurrency market without actually owning them.
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Invest in Crypto CFDs Now Looking at DOGECOIN, we can see that the scale of the increases is reminiscent of the last two big movements in the cryptocurrency, although it is a little more spread out in time.
The magnitude of the move indicates that there is room for a correction, with the RSI at 82.2 points.
On the other hand, as long as Bitcoin remains strong, it is difficult to expect the momentum on Dogecoin to weaken significantly.
Source: xStation5 How to stay updated on market news and analysis? If you want to stay updated on the latest market news and access economic-financial analyzes and forecasts, we suggest you visit the XTB news section.
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