Bitcoin’s rise above $30k: Optimism in the crypto community

Bitcoin is above $30k at the time of articulating this piece. The community is in joy for obvious reasons. However, experts are busy decoding the mechanism that has backed this rise. One of the key elements to have come up is Fund Market Premium. The concept in itself is directly correlated to how BTC behaves. For instance, a positive premium signals that the price will rise because the sentiment among holders is optimistic.

Simply put, Fund Market Premium is the difference between the market price of the financial asset and its Net Asset Value.

A negative premium signals that the sentiments are in opposite directions. With BTC, the upward trend has been in the limelight since the time the token started dancing around the mark of $25k. The community gained more confidence in their holdings when short-term traders began selling their tokens to long-term holders. This incident has been historically linked to price rallies.

Another factor that has instilled a sense of confidence in the community is accumulating the token through instruments like GBTC (Grayscale Bitcoin Trust).

Accumulation means that holders expect a great performance. This applies to every financial product, irrespective of its background. For instance, the accumulation of a company’s stock means that it is likely to perform well in the times to come. This also refers to the sentiment that if there is selling in high volumes, then the chances are that the performance could dip.

More optimism exists regarding the future value of Bitcoin. To be precise, the current value of the token is $30,808.00. This represents a 24-hour increase of approximately 2.77%. Bitcoin price prediction has estimated that the token could end the year very well above the $30k mark. The next mark will probably be $32k, followed by the chase toward its all-time high value.

Moving forward, experts have hinted that it is imperative for Fund Market Premium to constantly ascent. Only then will the price of Bitcoin post a positive outlook. Long-term holders continue to accumulate the token. The supply is diminishing to further strengthen the claim that the price will be higher.

BTC is estimated to surpass its all-time value by the end of next year. However, it could get a little closer to that mark by the end of 2023. An alternative theoretical prediction is that the token will land back at around $26k.

With volatility in the picture, it is challenging to assume how well the estimates and predictions will roll out in the future. Moreover, approval of the Spot Bitcoin ETF is on the table, tentatively scheduled to happen in the first half of January 2024.

All eyes are on Fund Market Premium and its ascent with a positive value. Sentiments are bullish, and expectations are that they will last for a longer time.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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