Bitcoin Soars to Two-Month High amid Bullish Market Sentiment and Institutional Interest
Summary:
Bitcoin's value has soared to over $28,700, marking a two-month high due to institutional investors amending numerous Bitcoin ETF applications and the anticipation of Bitcoin supply halving. Increased institutional interest and key judgement victories in favor of Bitcoin have further fueled the bullish trend. Exchange patterns and long-term holding trends collectively point towards continued growing market sentiment. The article also mentions the Bitcoin Fear & Greed Index shifting from fear to neutrality.
Bitcoin's value is experiencing a surge today, with a dramatic rise above $28,700 making it a two-month peak for the cryptocurrency. The spike in Bitcoin's price is a result from Bitcoin maintaining its critical $28,000 standing, spurred by institutional investors amending numerous Bitcoin ETF applications and the budding narrative of Bitcoin supply halving among retail investors.
One key reason for Bitcoin's rise in price is the growing institutional interest. Despite negative macroeconomic trends, an influx of Bitcoin ETF amendments in mid-October has managed to keep Bitcoin's price over $28,000, improving market sentiment. Significant institutions began applying for ETFs after Neomi Rao, Circuit Judge at the U.S. Court of Appeals, ruled in GBTC's favor in its lawsuit against the SEC. A recent win for Grayscale when the SEC decided against appealing the case led to Grayscale submitting a new spot Bitcoin ETF application.
While several entities like BlackRock, Fidelity, ARK and 21Shares have applied, up till now, the SEC has continually denied the approval of a spot Bitcoin ETF.
The narrative surrounding the next Bitcoin halving, anticipated to occur in April 2024, is also growing. Analysts are speculating whether the event will generate bullish results for Bitcoin's price this time around. Capriole Investments suggests that the majority of Bitcoin's returns have occurred in the 12-18 month window following each Halving. An approval of a Bitcoin ETF might ease liquidity concerns, resulting in a projected $600 billion in new demand.
Moreover, the total BTC available on exchanges is decreasing, in line with the boost in Bitcoin price. Cryptocurrency exchanges have seen a drop of over 70,000 Bitcoin since the September peak. The drop in Bitcoin on exchanges is seen as a bullish signal as this is typically when investors intend to hold onto their BTC long-term.
Record levels of Bitcoin ownership by long-term holders are being reported, accounting for 76% of all BTC ownership for the first time. With Bitcoin persistently leaving exchanges, liquidations tend to greatly affect the price.
The ongoing bullish momentum in Bitcoin's price is positively influencing market sentiment. This is reflected in the Bitcoin Fear & Greed Index which indicates the market has transitioned from a state of fear to neutrality. No financial advice is provided in this article, and it is strongly suggested that individuals personally research prior to making any investment or trading decisions.
You can treasure this piece of news in history by collecting this article as a Non-Fungible Token (NFT), a testament to your support for independent crypto journalism.
Published At
10/19/2023 6:02:23 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.