Title: The Driving Forces Behind Bitcoin’s Price Surge and More Crypto News

Today's Major Crypto News Bitfinex Reveals Key Market Drivers, CoinTracking Launches UK Tax Tool, and More!

Bitcoin’s Key Price Drivers this Month + More Crypto News

Last updated: January 8, 2024 21:59 EST Reading time: 4 min

Get ready for your daily dose of fascinating blockchain and crypto news, where we dive deep into the stories that fly under the radar. Today, we uncover the key drivers behind Bitcoin’s recent price surge and explore other exciting developments in the crypto world.

Key Price Drivers for Bitcoin This Month

The surge in Bitcoin’s price isn’t a one-dimensional phenomenon; it’s a vibrant tapestry woven with anticipation, institutional interest, and market dynamics, according to Jag Kooner, Head of Derivatives at Bitfinex.

• TIA Price Analysis: Is Celestia Crypto Doomed, or Can Price Recovery Prevail?
• Jim Cramer Shifts Stance on Bitcoin: Is the Crypto Market Topping Out?
• Bitcoin: Heading to the Moon (Literally) with 1 BTC Onboard! 🚀🌕

In an email, Kooner shared intriguing insights on the factors driving key market developments:

Anticipation of ETF Approval

The market’s enthusiasm for Bitcoin’s recent surge is closely tied to the anticipation of the US Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs). Within the last few months, Bitcoin has witnessed nearly a 49% price increase since October 2023, as multiple ETF applications, including BlackRock’s, await approval or denial. It’s a nail-biting time for investors, as they eagerly await the SEC’s decision.

Bitcoin Halving

Bitcoin halving, expected in April, has historically led to price increases due to the reduced supply of new coins. The statistics show a significant decrease in the supply of inactive coins, particularly among long-term holders. The effects of halving are already in motion, generating a positive impact on the market.

Futures Market and Funding Rates

The BTC futures open interest on the CME Group has recently hit levels unseen since 2022, demonstrating heightened activity from asset managers and leveraged funds. The positive funding rate across the board indicates a bullish sentiment and a willingness among investors to bet on further price increases. The notable correction towards $40,000 could be seen as a “funding rate reset,” accompanied by one of the most significant liquidation cascades ever.

Institutional Sentiment

The sentiment among institutional investors regarding Bitcoin remains constructive. Late 2023 witnessed upward shifts in the futures curve, indicative of bullish activity and a long bias. This institutional interest is further emphasized through the increase in CME open interest, mainly due to the participation of TRadFi investors over normal retail investors.

Now that we have examined the primary drivers behind Bitcoin’s price surge, let’s explore other intriguing stories from the crypto space.

CoinTracking Crypto News Today: Crypto Tax Tool for UK Investors Launched

Are you based in the UK and struggling with crypto taxes? Fear not, for CoinTracking has released a new crypto tax tool designed specifically for UK-based investors. This software simplifies the process by enabling investors to import trades from various exchanges, wallets, and blockchain networks. Additionally, the tool offers more than 25 advanced reporting features, helping investors understand their tax liabilities and identify potential tax savings.

Thanks to CoinTracking’s unique features, investors can generate accurate tax reports tailored to the requirements of the HMRC. And if you need extra assistance with your taxes, CoinTracking Full-Service is here to help. Their team of experts and partner crypto tax firms can review, validate, and adjust your transactions, ensuring compliance and peace of mind.

OKX Ventures Invests in Web3 Gaming Company Matr1x

In a strategic move, OKX Ventures, the investment arm of crypto exchange OKX, has invested in Matr1x, a web3 entertainment platform that leverages cyberpunk-themed e-sports games to engage users. Matr1x has raised approximately $20 million from various venture capital firms to develop Matr1x Fire, a first-person shooter styled after CS:GO. The game’s unique feature is its ‘battle-royale’ mode, where players collaborate in teams to defeat enemies.

Matr1x Fire embraces classic web3 elements, including NFTs, that unlock special experiences and privileges for players. The game will be accessible on both mobile and desktop platforms, promising an immersive gameplay experience that captivates users.

KuCoin Ends 2023 With Phenomenal Growth

The annual report from KuCoin, a popular crypto exchange, reveals impressive growth in 2023. The user base has surged to nearly 31 million, marking a 16% increase compared to the previous year. Notably, Latin America experienced a significant 34% growth, while other key regions such as the Middle East and Africa and Europe saw growth rates of 27% and 25%, respectively.

In the final quarter of 2023, spot trading volume on KuCoin increased by a staggering 106%. Europe (+169%), Latin America (+111%), and the Middle East and Africa (+124%) were the major contributors to this unprecedented growth. Additionally, KuCoin added 149 new assets, bringing the total to 830 digital assets, supporting a wide range of trading options for users.

With 1.9 million KCS holders, a 11% year-over-year increase, and over 10,000 KuCard holders within a month of its launch, KuCoin is solidifying its position as a leading crypto exchange.

Now that you’re up to date with the latest in the crypto world, it’s time to engage with us! Feel free to leave your questions and comments below. And don’t forget to share this article with your crypto-loving friends on social media!

---

Q&A Section

Q: Are there any upcoming regulations that could impact Bitcoin’s price?

A: The anticipated approval or denial of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) is a critical development that could have a significant impact on Bitcoin’s price. Investors are eagerly awaiting the SEC’s decision, as it could potentially open the floodgates for institutional investment in Bitcoin and shape its future trajectory. Keep an eye on regulatory developments for potential price movements.

Q: What other factors can influence Bitcoin’s price?

A: While anticipation of ETF approval and Bitcoin halving are essential price drivers, other factors can also impact Bitcoin’s value. These include macroeconomic events, geopolitical tensions, technological advancements, mainstream adoption, and market sentiment. It’s crucial to stay informed about these factors to gain a comprehensive understanding of Bitcoin’s price movements.

---

References:

1. Bitcoin (BTC) Price Pumps Towards $45,000; Reporter Claims SEC To Approve Multiple BTC ETF Applications, News Expected Soon or Tomorrow

2. Bitcoin Halving 2024: Miners Predict Potential Outcomes of Reduced BTC Rewards

3. North Korean Hacking Group Lazarus Withdraws $12M Bitcoin from Coin Mixer

4. Citi Alumni-founded Startup Could Offer Bitcoin Securities, But Need the Green Light From the SEC, says Bloomberg

5. Hydropower Fuels Kyrgyzstan’s Crypto Mining Industry

6. FTX Debtors Release Estimated Values of Cryptocurrency Claims, With Bitcoin Currently Priced at $16,871 Per Coin

7. Future of NFTs is Bright, Says Rarible Foundation’s Strategy Head

8. Protocol Village: KuCoin Invests in Solana-based Mixed-reality Project DEMR

9. 3830 or $5100: The Next Major Ethereum Targets According to Model

10. Bitcoin: A Liberating Force in an African Village Through Mining

---

Note: Original image source and other links provided within the article.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!