Bitcoin (COIN: $BTC) is undergoing another super bullish rally after reaching a fresh 52-week high, set on December 12th, at $44K. It had risen over 16.07% since the start of December. We last witnessed Bitcoin touching the $40k mark back in May 2022. Although it has faced a setback, it dropped back down to 41k from a high of $44k recently.
Why is Bitcoin Surging?
Bitcoin has experienced a nearly 80% surge since mid-September, achieving notable milestones by surpassing both the $30,000 and $40,000 levels in rapid succession. According to Coinglass, this rapid surge, then drop has resulted in a $230 million liquidation in the crypto market four days ago, on Monday.
Moreover, investors are assured that the Federal Reserve has overcome price hikes, as inflation is cooling down, turning their current focus to extending the cutting of interest rates to the next year, 2024. This altered forsight from the Federal Reserve has sparked an upward trend throughout global markets.
Furthermore, it could go higher if the ETF’s applications are approved by the SEC (Securities and Exchange Commission). Blackrock’s and other companies’ Bitcoin applications are likely to be accepted by January, according to Bloomberg Intelligence.
Tony Sycamore, a market analyst at IG Australia, says in a note, “Bitcoin continues to be supported by optimism around SEC approval for an ETF and Fed rate cuts in 2024.”
Furthermore, some other cryptocurrencies, such as Dogecoin, one of the most famous memecoins, are also advancing. A positive sentiment prevails across various countries, reflecting a bullish outlook.
Kimchi Premium
In South Korea, Bitcoin was 4% ahead of the global price on the country’s own exchanges, Upbit and Bithumb. This week, on Wednesday, it is known as Kimchi Premium, which means that the price of bitcoin is locally above the global price. The Kimchi Premium was also noticed at the end of 2017, when the price of Bitcoin shot up 30%.
One significant factor is the strict capital controls imposed by the South Korean government, which makes it challenging for investors to move large sums of money abroad. As a result, there is often a higher demand for cryptocurrencies within the country, leading to price discrepancies.
Additionally, the term originated from a popular Korean dish known as Kimchi.
Weathering Crackdown
The revival of Bitcoin from the 2022 crypto downfall has resulted in a US crackdown, putting Sam Bankman behind bars as he was found guilty of wire fraud at FTX and also the founder of Binance Changpeng Zhao handed big fines and rap sheets. According to one of the posts on Binance, Changpend Zhao (CZ) may be sentenced up to 10 years in jail. Our sources tell us that the Winklevoss Twins and Barry Silbert are next to take a fall, thanks to a ponzi scheme combined with accounting fraud, which they ran on more than 200k unexpected crypto investors. They have since tried to take their scam further, attempting to wash away their liabilities through bankruptcy fraud.
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