bitcoin (btc) price has risen today, reaching an intraday high of $37,972 before retreating below $37,000. The rally to a new year-to-date high comes as hype around a spot btc exchange-traded fund (ETF) resulted in a wave of short liquidations, driving up prices across the stock market. encryption.
Let’s analyze the reasons why the price of bitcoin has risen today.
Institutional interest in bitcoin boosts market sentiment
Despite a number of macroeconomic headwinds, bitcoin price continues to rise, making a 121% year-to-date gain and options market data shows traders leaning towards the $40,000 level. The price movement of the past two weeks sent the crypto Fear and Greed Index to its highest level since bitcoin price hit an all-time high of $69,789 in November 2021.
After a flurry of spot amendments to bitcoin ETFs in mid-October, the first window for the Securities and Exchange Commission (SEC) to approve the 12 outstanding ETFs opened on November 9.
New research note from me today. We still believe there is a 90% chance by January 10th of getting a spot bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin ETF approvals. But if it comes sooner, we will enter a window where a wave of approval orders *MIGHT* occur for all current applicants. pic.twitter.com/u6dBva1ytD
-James Seyffart (@JSeyff) November 8, 2023
To date, the SEC has refused to approve a spot bitcoin ETF despite numerous applicants, including BlackRock, Fidelity, ARK Invest, and 21Shares. The open period for approval lasts until November 17. If the SEC continues its pattern of delaying the approval of a bitcoin ETF, it will remain until January 10.
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An approval could reportedly generate $600 billion in new demand. CryptoQuant analysts believe that the approval of an ETF will lead to a $1 trillion increase in bitcoin‘s market capitalization.
Galaxy Digital predicts a 74% price increase in the first year after launching a btc spot ETF.
bitcoin liquidations rise as exchange supply falls
Coinciding with bitcoin‘s price gains, btc supply on exchanges remains below the May 3, 2023 peak. Exchanges have lost more than 200,000 bitcoin since that annual peak.
Coins leaving crypto exchanges are perceived by the market as a bullish sign, given that traders often withdraw their btc when they want to keep it in custody for the long term. On November 7, long-term bitcoin holders hit an all-time high by purchasing 92% of all newly minted btc.
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As bitcoin continues to leave exchanges, liquidations tend to have a substantial impact on the price. In the last 24 hours alone, over $126 million of btc shorts have been liquidated, and over $74.6 million of shorts have been liquidated in a 12-hour period.
bitcoin price is showing bullish momentum, which is helping btc break out of consolidated ranges. A break through the key resistance levels of $37,000 gives confidence in the bullish momentum of the bitcoin price. This move is leading analysts to believe that bitcoin‘s price surge has disappeared.
btc?src=hash&ref_src=twsrc%5Etfw”>#btc on gas up to 37k and the flows in futures and options are definitely constructive:
– CME Futures OI surpassed 100,000 btc for the first time. Nov Basis is trading at approximately 20%
– Implied volatilities increase along the curve with calls in demand, which is reflected in a greater bias with btc… https://t.co/Uw91k1hVWE—Kelly Greer (@kellyjgreer) November 9, 2023
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
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