It took less than 24 hours for the bitcoin price to recover from a 30 percent drop. Earlier today, on December 23, the price of bitcoin recovered from $11,500 to $15,000, as the cryptocurrency market began to demonstrate optimistic signs of growth.
Factors of Potential Short-Term Rally
Since yesterday, the market valuation of cryptocurrencies has increased from $480 billion to nearly $600 billion. Every single cryptocurrency in the market, which previously recorded major corrections, rallied, with bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin and other cryptocurrencies in the market recording large gains.
Bitcoin in particular demonstrated a rapid increase in demand from global marekts including the US, Japan, and South Korea, as the daily trading volume of the cryptocurrency achieved $15 billion. That is, a daily trading volume that is larger than that of most stock markets.
Analysts such as billionaire hedge fund legend Mike Novogratz and RT’s financial analyst Max Keiser stated that with the recently acquired momentum, the bitcoin price could rally to $24,000 in the short-term.
“Bitcoin pullback very healthy for this bull market. $28,000 now in play,” said Keiser, as the cryptocurrency market rebounded and showed speedy recovery after a substantial decline in market valuation.
In the short-term, there are several driving factors that could lead to a bitcoin price surge. This week, it was reported that the Chicago Board Options Exchange (Cboe), the largest futures exchange in the global finance market which listed bitcoin futures in partnership with Gemini, and the New York Stock Exchange (NYSE) have filed bitcoin exchange-traded fund (ETF) applications to the US Secruties and Exchange Commission (SEC).
The main difference between futures and ETFs is that the latter is more accessible to individual investors and traders in the stock market. With a bitcoin ETF, any investor in a major stock market such as NYSE or the Nasdaq can trade bitcoin with ease, through existing accounts.