Bitcoin Price Observed to Rise Above US$ 29,000, This is a Factor
In price movements at the end of the second week of October 202, Bitcoin (BTC) experienced a significant increase and reached a range above US$ 29,200. Reporting from cointelegraph.com, Bitcoin's rally follows the emergence of a number of important news in the crypto world.
1.Decrease in BTC Supply on Exchanges
Simultaneously with the rise in Bitcoin prices, the supply of BTC on exchanges continues to decline with the availability of this asset remaining below the monthly peak that occurred on September 4. This trend is considered a bullish signal by the market as traders tend to withdraw BTC from exchanges when they intend to keep it in long-term self-storage.
On October 19, long-term Bitcoin holders reached 76 percent of all BTC holdings for the first time in history.
A reduction in Bitcoin from these exchanges can have a significant impact on the price, and recent data shows significant liquidation of BTC short positions. In the last 24 hours, more than US$ 10.1 million in BTC short positions have been liquidated, with more than US$ 8.5 million in short positions having been liquidated within 12 hours.
2.Institutional Interest Increases Market Sentiment
The trigger for this bullish sentiment can be traced back to US Appeals Court Judge Neomi Rao's decision in favor of Grayscale Investments in its case against the US Securities and Exchange Commission (SEC) in August. This decision prompted a number of large institutions to apply for ETFs.
Despite repeated efforts, the SEC has been reluctant to approve a spot Bitcoin ETF, even with applications from financial giants such as BlackRock, Fidelity, Cathie Wood's ARK and 21Shares.
All these factors, combined with an increase in the Bitcoin Fear & Greed Index, which went from fear to neutral. This index contributes to creating very positive sentiment in the crypto market.
