Bitcoin (BTC) price rallied today, rising above $28,700 as a strong bullish candle pushed the price to a two-month high. Today’s Bitcoin price rally comes as Bitcoin holds the key $28,000 level amid institutional investor revisions to multiple Bitcoin spot ETF applications and retail investor hopes for the upcoming Bitcoin halving.
Let’s find out why the price of Bitcoin is rising today.
Institutional interest in Bitcoin drives market sentiment
A hasty correction in the spot Bitcoin ETF in mid-October helped keep BTC prices above $28,000, boosting sentiment despite numerous macro headwinds.
Many large institutions applied for ETFs after U.S. Court of Appeals Judge Neomi Rao sided with Grayscale Investments in its case against the SEC on August 29. Grayscale scored another victory on October 14 when the SEC reported that it would not appeal the decision. The decision not to appeal could lead to Grayscale applying for a new Bitcoin spot ETF on October 19.
So far, the SEC has refused to approve a spot Bitcoin ETF despite three applications from numerous applicants, including BlackRock, Fidelity, Cathie Wood’s ARK and 21Shares.
The Bitcoin halving story intensifies
The next Bitcoin halving event is expected to occur in April 2024, and analysts are still debating whether this halving event will bring bullish results to BTC prices.
According to Caprio Investments:
All of Bitcoin’s returns over its 14-year history and more have been calculated in the 12-18 months following each halving. Investing 4-6 months before each halving would have produced better results over the 12 months of 2020.
The report said that the approval of a Bitcoin ETF could help solve liquidity issues and create $600 billion worth of new demand. A recent report by Capriole Investments showed that after the gold ETF was approved, gold immediately exited the bear market and generated a 350% return.
Bitcoin on exchanges continues to fall
While Bitcoin’s price is rising, the supply of BTC on exchanges continues to fall below the monthly peak on September 4. Exchanges have lost more than 70,000 BTC since that monthly peak. The market sees tokens leaving cryptocurrency exchanges as a bullish signal, as traders typically withdraw Bitcoin when they want to hold it for long-term self-custody. On October 19, for the first time in history, long-term Bitcoin holders reached 76% of total BTC holdings.
As Bitcoin continues to leave exchanges, liquidations tend to have a significant impact on price. In the past 24 hours alone, over $10.1 million in BTC short positions were liquidated, and over $8.5 million in BTC short positions were liquidated in 12 hours.
Bitcoin prices are showing some bullish momentum, helping to boost sentiment. The Bitcoin Fear & Greed Index shows the market has shifted from fear to neutral, up seven points in a week.
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【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this information is at your own risk.
