Bitcoin vs. Tesla: Market Cap Surge Amid ETF Anticipation

Bitcoin vs. Tesla

Bitcoin vs. Tesla
Bitcoin vs. Tesla

Bitcoin’s surge today has seen its market capitalization rise as well, giving it a run for its money with Tesla. On Tuesday, Bitcoin’s market capitalization even overtook Tesla’s. According to 8Marketcap, currently Bitcoin’s market capitalization is $662.01 B, putting it in 12th place, while Tesla’s $673.13 B puts it in 11th place.

BTC 1D graph coinmarketcap

According to Coinmarketcap, BTC is currently trading at $33,942.54, an increase of about 10.42% overnight. At one point during the day, it hit 34.7K, its highest point of the year. In addition, crypto data provider Alternative’s “Fear-Greed Index” rose 13 points from the previous day to 66, indicating that investor sentiment has deteriorated and shifted into the fear phase. The index ranges from 0, which represents extreme fear in the market, to 100, which represents extreme optimism.

 

Anticipation of Bitcoin Spot ETF Approvals

Bitcoin ETF listing on DTCC. Source: Eric Balchunas
Bitcoin ETF listing on DTCC. Source: Eric Balchunas

Bitcoin’s recent gains are largely driven by anticipation of Bitcoin spot ETF approvals, most notably BlackRock’s potential approval of a Bitcoin spot ETF, among other Bitcoin spot ETFs. “The ‘iShares Bitcoin Trust’ (BlackRock Bitcoin Spot ETF) has been registered with the U.S. Depository Trust and Clearing Corporation (DTCC) and has a ticker of IBTC,” said Bloomberg ETF expert Eric Balchunas. “The actual launch is likely to take a month or two. The SEC’s deadline for approval of the BlackRock Bitcoin Spot ETF is January 10, 2024.”

In other news, the U.S. Court of Appeals for the District of Columbia Circuit has issued a final ruling on the lawsuit between Grayscale and the SEC, which will require the SEC to reconsider the Grayscale GBTC to Bitcoin Spot ETF conversion application. The SEC had previously decided not to appeal the Grayscale lawsuit.

Grayscale applied to convert ETHE to a spot ETF today. ETHE is the world’s largest ETH investment product with $5 billion in assets under management.

 

Predictions for BTC

There have also been a number of upside predictions for BTC’s price.
Jack Tan, co-founder of crypto liquidity platform WooNetwork (WOO), made this prediction:

“Bitcoin is in an anti-gravity phase and could reach $7.5k in a few months. The current price surge is a preview of ETF approvals, and this trend was already anticipated in February when the Grayscale Bitcoin Trust (GBTC) discount narrowed.”

Coinglass
Coinglass

 

In addition, in the last 24 hours, the forced liquidation volume of Bitcoin perpetual futures was $221.06M, while the total liquidation volume was $399.67M. When Bitcoin’s price rises above a serious resistance level, it is due to bearish bets. A liquidation occurs when an exchange is forced to close a trader’s leveraged position due to a partial or complete loss of initial margin. This happens when there are insufficient funds to continue trading. Cryptocurrency exchanges such as Binance, Huobi, and OKX have each seen liquidations worth $50 million due to the use of significant leverage. The largest single liquidation occurred on Binance, with an order value of $10 million.

 

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