The price of bitcoin has seen a significant increase of over 4% in the last 24 hours. The price has risen to $36,800. Several key factors have contributed to this rally.
#1: Buzz about bitcoin ETFs
The rise in btc price can be attributed to renewed speculation regarding the possible approval of a bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). Yesterday, Bloomberg’s James Seyffart published a new note, highlighting that the SEC is in a unique position within the next eight days where it could approve all 12 applications for spot ETFs, like Bitcoinist. bitcoin-etfs-short-window-all-12-opens/” target=”_blank” rel=”nofollow”>reported.
Seyffart further noted that the SEC has the opportunity to approve 9 applications (excluding Global 90%. approval of at least some of the pending applications before January 10, 2024.
The ETF buzz was further fueled by the news that Grayscale is in active talks with the SEC about converting its GBTC trust into a spot ETF. Grayscale’s recent court victory over the SEC on August 29 has heightened anticipation.
#2 bitcoin Whales
There has been a notable increase in bitcoin whale activities, which can be interpreted as a sign of market optimism. MartyParty, cryptocurrency analyst he pointed a pattern of substantial buying, with one whale buying $15 million of btc every three hours, suggesting an anticipation of positive developments on the ETF front.
Keith Alan from Firecharts observed that bitcoin whales are actively changing liquidity in the market, with notable changes in supply levels. He said: “FireCarts shows that btc whales continue to move liquidity into the order book. Bids that previously dropped to $34,000 have now returned to the $34,500 level.”
Additionally, an increase in TWAP (Time Weighted Average Price) purchases has been reported on Coinbase. Cryptanalyst Exit Pump noted, “btc Spot Delta: Someone at Coinbase twapping/buying market.” TWAP buying is a trading strategy used by large players to execute large orders in a manner that aims to minimize price impact and achieve an average execution price close to the market average over a specific time period.
#3 short squeeze
The bitcoin market has also seen a significant short squeeze, with approximately $51 million in btc short positions liquidated today (according to Coinglass data, at the close of this edition). This amount marks the largest short squeeze since October 23-24, when $161 million and $68.5 million worth of bitcoin short positions were liquidated on consecutive days, leading to a substantial price increase of over 18%. Today’s short squeeze certainly caught off guard some traders who believed that $36,000 – the high of the previous range – was a “safe” short trade.
#4 bitcoin supply dynamics
The supply of bitcoin on exchanges has been steadily declining, reaching its lowest level in six years at the end of October. Daan crypto Trades, a prominent cryptocurrency trader, highlighted the downward trend in bitcoin inflows to exchanges. He commented:
bitcoin Exchange inflows have been trending lower on the higher timeframe. Compared to the 2021-2022 period, there is a clear downward trend in btc inflows to exchanges. That would be expected to start increasing once the bull market really gets going and people start taking profits.
Furthermore, in chain data reveals that a significant 76% of bitcoin supply is currently in the hands of long-term holders, who have not moved their coins for over 155 days. Analyst Dylan LeClair emphasized the strength of hodlers, noting that a staggering 88.5% of supply has remained static over the past three months.
“The funny thing is that 88.5% of the bitcoin supply has not moved in the last three months. “Wall Street will really have to push this to get hodlers to dump their coins,” LeClair. fixed.
At the time of publication, btc was trading at $36,585.
Featured image from Shutterstock, chart from TradingView.com
