Bitcoin Price Surges to Record High of $108,000 Amid Rising Demand

Bitcoin price has reached a record high of $108,000 on December 17, marking a significant milestone in its ongoing bull run that began in 2023. This upward momentum is largely driven by increasing demand and decreasing supply growth, with the unwinding of high interest rates by central banks contributing to the surge.

Bitcoin ETFs See Significant Growth in Assets

Data shows that spot Bitcoin ETFs have accumulated over $36 billion in assets, bringing their combined total to more than $120 billion. This growth indicates that Bitcoin is increasingly competing with gold for investor attention, with some experts noting that Bitcoin ETFs are now close to surpassing the total assets of gold ETFs.

People asking me about this. Answer is YES, if you include all bitcoin ETFs (spot, futures, levered) they have $130b vs $128b for gold ETFs. That said, if you just look at spot, btc is $120b vs $125b for gold. Either way, unreal we even discussing them being this close at 11mo.

Supply and Demand Dynamics to Drive Bitcoin Price Higher

Bitcoin supply growth has not been strong due to increased mining difficulty, while the amount of Bitcoin remaining in exchanges has continued to fall this year. These supply and demand dynamics are likely to push Bitcoin prices higher in the long term, with demand expected to come from governments and corporations.

Federal Reserve Decision to Impact Bitcoin Price

The next key catalyst that could impact Bitcoin price is the Federal Reserve decision on interest rates. Economists expect a 0.25% rate cut, which would bring the year-to-date cuts to 1%. However, the Fed may disrupt the Bitcoin price surge with a hawkish tone due to concerns over sticky inflation.

Bitcoin Price Analysis

The daily chart shows that BTC has maintained a strong bullish trend over the past few weeks, with the price remaining above all major moving averages. However, the chart also reveals a rising wedge pattern, a common reversal signal, and bearish divergence patterns in the MACD and Relative Strength Index.

As a result, there is a possibility of a brief pullback, potentially to $103,000, following the Federal Reserve’s interest rate decision on Wednesday. Investors should be cautious and monitor the market closely for any changes in the Bitcoin price trend.

Tips for investors:

• Monitor the Federal Reserve’s interest rate decision and its impact on the Bitcoin price.
• Keep an eye on supply and demand dynamics, as they are likely to drive Bitcoin prices higher in the long term.
• Be cautious of potential pullbacks and adjust your investment strategy accordingly.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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