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Cryptocurrencies: 12,849
Markets: 946
Marketcap: $ 2.08 T(0.52%)
24h Vol: $ 100.55 B
BTC Dominance: 49.04%

Bitcoin Hovers Around $42K Level Amid High Expectations From ETFs and Miners’ Investments

Key Highlights

Bitcoin (BTC) trading at $42,471, a decrease of 1.50% as of Wednesday. The CEO of MicroStrategy, Michael Saylor, in a recent Bloomberg Interview, highlighted the significance of potential Bitcoin ETFs, likening it to the impact of the introduction of the S&P 500 index fund in the 1990s. A spot Bitcoin ETF could provide easier access for investors, possibly increasing demand and leading to a supply shock, especially with the upcoming Bitcoin halving event in April 2024.

Marathon’s Mining Investments

Marathon Digital plans to invest $178.6 million to acquire two mining sites in Texas and Nebraska, which could double Marathon’s hash rate in two years. This investment is set to boost Marathon’s mining capacity to 910 megawatts, of which Marathon will own 45%. The move is expected to lower the cost of mining a single Bitcoin by 30% and strengthen Marathon’s competitive edge in the mining industry.

Rising Transaction Fees

An observed increase in Bitcoin transaction fees, now higher than Ethereum’s, is linked to Bitcoin’s growing global acceptance and initiatives like BRC-20 tokens and Ordinals in the NFT sector. Countries like El Salvador and Argentina are increasingly migrating towards Bitcoin usage.

Technical Outlook

Technically, Bitcoin faces immediate resistance at $44,715 and $45,965, with support levels at $41,615, $40,660, and $39,725. The Relative Strength Index (RSI) is at 52, indicating a neutral market sentiment with a bullish inclination. The 50-Day Exponential Moving Average (EMA) for Bitcoin is at $42,200, signaling a sustainably bullish trend if maintained above this level. A guarded optimistic outlook is held by investors regarding Bitcoin’s performance, provided it stays above the threshold of $42,200 and continues to challenge higher resistances.

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