Why Is BTC Going Crazy Near $46K? Here are 3 Reasons!


"Everyone must be happy that BTC is going high, but be careful because the price is falling too fast."

The price of the king of cryptocurrency Bitcoin (BTC) finally managed to reach $45,600 when the leverage that is the open interest on the BTC contract has accumulated $982 million in the past 24 hours amid record highs in the United States (US) equity index.

So here it can be seen that the price of BTC is able to target a new annual high at $50,000, but it should be noted that investors should also be careful as $40,000 can be tested again this weekend.

Even so, spot trading volume across centralized crypto exchanges increased for the fourth month in a row in January 2024, where it rose to levels last seen in June 2022 when the approval of the BTC ETF sparked renewed interest in the digital asset.

There is no denying that Binance remains the largest crypto exchange by trading volume at a whopping 2.73% and holds a 31.3% share of the crypto market, but their spot share has gradually declined throughout 2023 due to various charges imposed by regulators.

Please note that the rise in BTC prices was also triggered by BlackRock and Fidelity's spot BTC ETF which already dominates Grayscale when it comes to certain liquidity metrics linked to the breadth of the crypto market, JPMorgan commented.

This is because Grayscale charges the highest among spot BTC ETF producers and despite lowering its 2% management fee to 1.5% as part of its conversion to spot BTC ETF, it is still significantly more expensive than its rival offerings.

As of this writing, BTC price has surged by 1.78% to $45,433 in the last 24 hours with a market cap of $891 billion then recorded a 5.38% increase over the last week.