Bitcoin Soars to 2-Month High Following SEC's Ripple Decision and Anticipation of Supply Halving
Summary:
Bitcoin's (BTC) value sees an upswing, reaching a new two-month high of over $30,200, following the SEC's decision to drop all charges against Ripple's leadership. This hike is triggered by institutional investors' amendments to spot Bitcoin ETF applications and anticipation of the forthcoming Bitcoin supply halving. Multiple factors, such as institutional interest, a future Bitcoin halving, and Bitcoin withdrawals from exchanges, are contributing to this bullish trend. This upward momentum has helped shift market sentiment from fear to neutrality.
Today, the value of Bitcoin (BTC) has experienced an upward trend, reaching a daily peak over $30,200 and setting a new two-month record. This surge in Bitcoin's value follows the U.S. Securities and Exchange Commission's (SEC) decision to abandon all accusations against Ripple’s top officials, that includes CEO Brad Garlinghouse, a decision that was well-received by the crypto community. Though Bitcoin may encounter difficulties maintaining the $30,000 marker, a noticeable portion of the bullish drive can be attributed to several amendments to spot Bitcoin ETF applications by institutional investors, and retail investors' anticipation for the forthcoming Bitcoin supply halving.
Factors contributing to the rise in Bitcoin's value can be traced to institutional interest in Bitcoin, which has helped uplift the market outlook. Despite numerous global economic impediments, the surge of spot Bitcoin ETF amendments in the middle of October assisted BTC in crossing the $30,000 threshold for the first time in two months, enhancing market morale. Large institutions started filing for ETFs post-August 29, when U.S. Appeals Court Judge Neomi Rao ruled in favor of Grayscale Bitcoin Trust (GBTC) in its legal battle against the SEC. Grayscale attained another victory on October 14 when the SEC declared it won't challenge this ruling. This decision may have propelled Grayscale to submit a fresh spot Bitcoin ETF application on October 19. Since then, the SEC has consistently declined to sanction a spot Bitcoin ETF, despite multiple applications from entities like BlackRock, Fidelity, ARK Invest, and 21Shares, which had submitted its proposal thrice.
The upcoming Bitcoin halving, scheduled for April 2024, is also under constant scrutiny by analysts who are assessing its potential bullish implications on BTC value. Investment firm Capriole Investments suggests that, "All and more of Bitcoin's returns across its 14-year cyclical history correspond to the 12-18 month period after each Halving. Investing four to six months before each Halving showcased even greater 12-month performance in 2020.” Approval of a Bitcoin ETF could potentially resolve liquidity issues, spurring $600 billion in new demand, as per reports. Capriole Investments also indicated that the approval of a Gold ETF led gold to swiftly exit a bear market and generate a 350% return. Market capitalization could see a $1 trillion boost following ETF approval, hypothesizes CryptoQuant.
On a related note, along with Bitcoin's value appreciation, the figure of BTC present on exchanges continues to decline since the September 4 peak. Over 70,000 Bitcoin have been withdrawn from exchanges since that peak. The market views this withdrawal as a bullish symbol, as it indicates that traders typically withdraw their BTC for long-term self-custody. As of October 19, 76% of all BTC ownership was held by long-term Bitcoin holders for the first time in history.
Concurrently, Bitcoin's progressive exit from exchanges means liquidations can significantly impact the price. In the last 24 hours, over $30.1 million BTC shorts have been liquidated, with shorts worth over $18.2 million liquidated within a 12-hour period.
This bullish trend in Bitcoin value is contributing to a positive shift in market sentiment, moving from fear to neutrality, with a 9-point gain in a week as indicated by the Bitcoin Fear & Greed Index.
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Published At
10/20/2023 6:37:19 PM
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