Investing in Web 3.0: A Guide to the Spot-Driven BTC Price Rally

On Jan. 2, Bitcoin (BTC) hit a new 21-month high, bringing back a wave of enthusiasm to the crypto markets in the Asia trading session.

Has Web 3.0 Started?

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BTC price closes in on ETF target range

Data from Cointelegraph Markets Pro and TradingView revealed that BTC price was gaining ground as the new year festivities came to an end.

With the anticipation of the United States’ first spot Bitcoin exchange-traded fund (ETF) approval, BTC/USD surged to hit $45,922 on Bitstamp.

Rumors of the ETF were abundant, some even suggesting a decision could be made before the official approval window, which begins Jan. 4.

Traders were in agreement that the ETF was the cause of the BTC price rise. Crypto Tony stated in an update to subscribers on X (formerly Twitter) that it was due to the “anticipation” of the ETF.

“Bitcoin is trading like an ETF is about to be approved,” trader, analyst and podcast host Scott Melker summarized.

Analyzing order book changes, fellow trader Skew noticed that some selling was taking place, but the volume was comparatively low.

“Price stalling since spot selling started, eyeing previous highs as area of importance on a dip ($44.4K),” his latest X post stated.

As Cointelegraph reported, estimates for how high BTC/USD could go around the ETF focus on $48,000.

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No major bloodbath for BTC shorts

Despite gaining up to 8% in 2024 already, Bitcoin nonetheless saw no large losses from those betting against it.

According to the latest data from CoinGlass, only $38 million worth of BTC shorts were liquidated on the day at the time of writing.

Before that, Cointelegraph reported on unusually high funding rates across exchanges, suggesting that the ETF event would push prices upwards.

Altcoin shorts liquidations totaled $62 million.

Skew noted that “earlier” shorts were taken by surprise when the price went above $45,000, with perpetual swap traders not prepared for a further rise.

“What is clear here is that the perp market was mostly under-exposed to this current move which is being driven by spot, so this means with perps following spot price there will be a feedback loop of volatility especially around $45K,” he commented.