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Bitcoin: If $44K is here, can $50K be far behind?

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On the 6th of December, Bitcoin touched prices last seen in April 2022.
Optimism around spot ETFs could help propel BTC towards $50k.

Bitcoin [BTC] rose 4.88% in the past 24 hours, sitting at $43,522 at press time, per CoinMarketCap. This rally, supported by a multitude of factors, helped the king coin cross $44,408 in the early hours of the 6th of December.

The king coin stayed true to its moniker and rose 16% in the first five days of December, igniting the market and causing a flurry of activity. Keeping these numbers in mind, will BTC reach $50k before 2024 rolls around?

Is panic-buying behind BTC’s rise?

According to most crypto experts, panic-buying could be a major reason why Bitcoin’s price continued to rise. Notably, there could be an element of FOMO and FUD in the market, spurring investors to buy more in anticipation of further price increases.

As a report by Matrixport puts it,

“Traders do not have enough upside leverage, this is the conclusion from the elevated premium that perpetual futures are trading at. This shows panic buying from traders who are closing out shorts or increasing leveraged longs.”

However, panic buying is not the best idea when it comes to cryptocurrencies, given their extremely volatile nature.

Price increases brought on by these methods have historically been temporary, and this is not a good strategy for long-term investors.

Thus, Matrixport’s above report, which talks about traders “closing out shorts,” could be an indicator of a major plummet in the days to come.

Regardless, do not consider this as investment advice, and remember to DYOR before investing in the king coin at this time.

This panic-buying behavior helped the overall crypto market cap hit $1.5 trillion on the 5th of December, which sat at $1.59 trillion at press time, according to
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Author: Saman Waris

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