Bitcoin Sees Rise with Spotlight on Spot BTC Exchange-traded Fund (ETF)
The price of Bitcoin has taken an upward turn today, achieves intra-day high of $37,972 before a slight dip below $37,000. The surge to this new year-to-date high is led by the excitement surrounding a spot BTC exchange-traded fund (ETF), causing a cascade of short liquidations and pumping up prices across all corners of the crypto market.
Driving Factors Behind the Bitcoin Rise
Despite a host of macro headwinds, Bitcoin continues to press forward, registering a 121% year-to-date gain. Telltale signs are evident in the options market data, with traders setting their sights on the $40,000 level. The price action in the recent weeks has sent The Crypto Fear & Greed Index to its peak level, a crowning achievement since Bitcoin reached the all-time high of $69,789 in November 2021.
Following the flurry of spot Bitcoin ETF amendments in October, the Securities and Exchange Commission’s first window for approval of the 12 pending ETFs swung open on November 9. The approval stage, including notable applicants like BlackRock, Fidelity, Ark Invest, and 21Shares, extends up to November 17. In case of continued delay by the SEC, the approval period stays open up until January 10.
As per estimates, an approval could usher in $600 billion new demand. CryptoQuant analysts have predicted that an ETF approval could result in a $1 trillion hike in Bitcoin’s market capitalization. Galaxy Digital, on the other hand, anticipates a 74% increase in price in the first year following the launch of a spot BTC ETF.
Surge in Bitcoin Liquidations as Exchange Supply Dips
Alongside Bitcoin price gains, the BTC supply on exchanges continues to remain below the May 3, 2023 peak. The exchanges have observed a reduction of over 200,000 BTC since then. Coins leaving crypto exchanges are usually considered a bullish signal as traders are likely to withdraw their BTC for long-term self-custody. As of November 7, long-term Bitcoin holders made an all-time record by buying up 92% of all newly minted BTC.
With Bitcoin steadily exiting exchanges, liquidation tends to have significant price impact. In the last 24 hours, over $126 million in BTC shorts have been liquidated, with over $74.6 million in shorts liquidated within a 12-hour timeframe.
Currently, Bitcoin is showcasing signs of bullish momentum, aiding its breakout from cumulative ranges. Breaking past the crucial resistance level of $37,000 boosts confidence in Bitcoin’s potential for an upwards move. Analysts are reading this progress as an indication that the ceiling for Bitcoin’s price has been significantly elevated.
Please note that this article doesn’t contain investment advice or recommendations. Every investment and trading move comes with risk and readers are encouraged to conduct their own research before making a decision.