As of May 22, 2024, there has been a noticeable surge in market activity and volatility for Bitcoin (BTC). Because of a number of important reasons, the price of Bitcoin is now hovering around $69,000. The recent Bitcoin halving, which decreased the mining incentive from 6.25 to 3.125 BTC per block, is one significant factor. Because fewer new Bitcoins are available, price hikes have generally been associated with this reduction in supply.
In addition, there has been a notable decline in BTC deposits to exchanges and a large influx of BTC to accumulation addresses. This suggests that investors have a strong holding stance, which lessens the urge to sell and promotes price stability. Significant short liquidations of over $44 million over the last day have also fueled the price increase as short sellers are compelled to cover their places, raising the cost even more.
In addition to increasing demand, the spot Bitcoin ETFs' debut earlier this year has contributed to the long-term growth expectation for the cryptocurrency. Significant investor interest in these ETFs suggests that Bitcoin is becoming more widely accepted as a reliable investment option.
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