Benzinga - In a recent post on the social media platform X, crypto analyst Willy Woo highlighted the bull and bear cases for Bitcoin (CRYPTO: BTC), amid the apex crypto's recent bull run.
What Happened: On Friday, Willy Woo highlighted the bull and bear cases for Bitcoin, as the past month witnessed a rally of 23% in the price of Bitcoin, which took year-to-date gains to 164%.
In regards to the bull case for Bitcoin, the crypto analyst highlighted the drop in rates and the peaking of the U.S. dollar index. He also noted the "imminent approval" of a Spot Bitcoin ETF, the "impressive public company treasury demand for BTC indicated by MicroStrategy's (NASDAQ: MSTR) buying appetite" and the decline of paper Bitcoin. He further pointed to comments by stockbroker Peter Schiff, who noted that gold is at an all-time high but not Bitcoin.
The bear case for Bitcoin, on the other hand, is marked by "bearish technicals developing," spot flows returning to exchanges, a $39,000 Bitcoin CME (Chicago Mercantile Exchange) gap, an ease in futures demand and "juicy long liquidations up for grabs sweeping lows."
Read Next: Bitcoin's Bull Run Cripples Short Stock Sellers, Drains $2.6B From Their Pockets
Why Does It Matter: The SEC has an approval window from Jan. 5 to Jan. 10, 2024 for the Spot Bitcoin ETF. Currently, there are 13 applicants awaiting approval.
Below are several key items that provide additional context to Woo's post:
- Earlier this month, Schiff highlighted on X that gold is trading at record-high levels, which he said is far more important than Bitcoin trading above $40,000. He further added that “[gold] has completely broken out. It's in uncharted territory, while Bitcoin still needs to rally more than 60% from here just to make a new high.”
- Federal Reserve rates are scheduled for a Dec. 13 release, and are expected to remain unchanged at 5.25% to 5.5%. Forbes reported that markets are expecting the Fed to cut rates rather than raise them in 2024.
- The U.S. dollar index has seen a 0.5% gain on a year-to-date basis, while the past month saw a 1.7% drop.
- Based on the CME gap of $39,000, Bitcoin prices can drop by 10%, therefore providing another buying opportunity for investors.
- CoinGlass data indicates that Bitcoin saw over $26 million in long positions wiped out. The entirety of Bitcoin liquidations totaled $43.58 million, with long positions accounting for 61.97%.
Also Read: Bitcoin Bull Frenzy Hits $44K As Futures Market Expects 10-12% Rise Into 2024
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