Two Factors Driving Bitcoin Price Above $67,000
The recent price recovery of Bitcoin (BTC) to $67,000 was mainly driven by two factors.
1. Support from Spot ETFs
The average price of Bitcoin spot ETFs is $57,000, a level that became a key support in 2024, helping the market remain stable during volatility.
Despite the market's sell-offs and pullbacks, investors in spot ETFs have shown resilience and have not seen large-scale sell-offs, showing confidence in Bitcoin's long-term potential.
2. Surge in Futures Open Interest
The open interest (OI) of Bitcoin futures has reached a new high since 2020, especially on Binance, where OI has reached $40 billion.
This reflects traders' bullish sentiment and continued buying demand, which may further drive Bitcoin prices up. In addition, the recent increase in whale transactions also shows that large investors are actively accumulating Bitcoin, providing more confidence in the market.
The solidity of spot ETFs and the active futures market have jointly provided support for Bitcoin's rise. Although there may be adjustments in the short term, the medium and long-term trend remains bullish.
