$BTC reached its highest price of US$ 35,000 or around Rp. 555.4 million for the first time since May 2022. This was supported by positive sentiment towards Bitcoin exchange-traded funds and a move to safe funds which caused a surge in long-term liquidations. short.
On Tuesday, Bitcoin rose 7.97% to US$33,900, according to Coin Metrics. Meanwhile on Monday evening the price reached US$ 35,113, the highest level since May 8, 2022. Bitcoin is now up 104% from the start of the year and 105% from its lowest level in 2022.
According to CNBC.com, this rally was partly triggered by investors betting against crypto assets scrambling to cover short sales positions, in other words, short-term pressure. Bitcoin saw short liquidations worth US$275.45 million on Sunday, followed by another US$100.44 million on Monday, according to crypto data provider CoinGlass.
"The real catalyst that pushed Bitcoin above US$34,000 was short-term liquidations worth US$167 million, mainly on overseas exchanges," Ryan Rasmussen, analyst at Bitwise Asset Management, told CNBC, quoted Wednesday, (25/10/2023) .
"I don't think anyone expected the level of price action we saw, and investors who shorted Bitcoin in the $33,000-plus range certainly felt the impact of the shock," he added.
This step also raised the market value of other cryptocurrencies. Ether and Ripple's XRP each rose about 4%, while Solana tokens added 2%. Crypto equities also got a boost with Coinbase and Microstrategy up 6.3% and 12.6% respectively.
Coinbase was up double digits at one point during the day, along with the biggest mining stocks. Digital Marathon ended the day up 11.5% and Riot Platforms rose 10.3%.
Last week, the SEC declined to appeal the court's decision due to a critical deadline in Grayscale's lawsuit against it, fueling hopes that a Bitcoin-linked ETF could be approved in the next few months.
Momentum built as companies in the Bitcoin ETF updated their filings and major investors like Ark's Cathie Wood and Galaxy's Mike Novogratz stressed that the SEC's tone had changed and it was now engaging positively with the industry.
A Bitcoin ETF would give investors a way to gain exposure to Bitcoin price movements without owning the cryptocurrency directly. Bitcoin is considered a highly volatile asset and its price fluctuations are unpredictable.
Major financial institutions such as BlackRock, Invesco, Fidelity, and Grayscale have pushed for Bitcoin ETFs and applied to sell the asset, describing it as a safer investment option compared to direct crypto investments known for their speculative nature and price volatility.
Coinbase told CNBC this week that it is confident that its US Bitcoin exchange-traded fund will be approved by the US SEC.#BinanceSquare #bitcoin #cryptonews
