Bitcoin saw one of the strongest daily moves yesterday, jumping from a low of $53,600 to over $58,000 in just one day.
Factors that may explain this surge:
1. The impact of ETF flows:
Since the launch of ETFs in January of this year, they have played a significant role in influencing Bitcoin price movements.
Positive trends in ETF flows usually lead to higher prices, and vice versa.
Over the past weeks, Bitcoin has fallen sharply from a high of $64,000 (on August 26) to below $52,500 (on September 6), with ETFs recording net negative inflows of $900 million.
2. Going against the market trend:
Over the past few days, Santiment reported that traders have been opening large short positions on platforms such as Binance and BitMEX.
3. Stablecoin Inflows:
The influx of stablecoins into exchanges is one possible reason behind the huge surge in Bitcoin’s price, as investors seek to take advantage of the price decline.
According to data from IntoTheBlock, $300 million in stablecoins were transferred to exchanges on Monday, which means buying is possible.