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Cryptocurrency News 11 months ago
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Bullish Market Fuels Bitcoin Surge, ETF Approval Could Propel $1T Market Cap Boost

Algoine News
Summary:
Bitcoin's price rebounds to an intra-day high of $38,274, following a bullish market sentiment and speculation surrounding approval of a Bitcoin ETF. Despite an initial drop in reserves after a $4.3 billion settlement with the Department of Justice, Binance sees Bitcoin inflows rise again, maintaining the largest Bitcoin reserve among similar platforms. Despite hurdles, Bitcoin's year-to-date gain reaches 130.5% with rising volatility. Crypto analysts predict a Bitcoin ETF approval could lead to a $1 trillion increase in Bitcoin's market cap. Institutional investors have already driven over $1.5 billion into Bitcoin in the past year.
Bitcoin has witnessed a surge in price today, bouncing back from its Nov 28 pullback, which saw it dropping below $37,000, to achieve an intra-day peak of $38,274 today. This increase has been propelled by an increasingly confident market sentiment betting on Bitcoin. On the heels of the Binance payment, speculation surrounding the approval of a Bitcoin ETF, has ostensibly fanned the flames, with traders predicting significant cash influxes thereby pushing cryptocurrency values upwards. Analysing why Bitcoin witnessed such an upswing today, the aftermath of the Binance situation plays a crucial part. Following the guilty plea of Changpeng "CZ" Zhao and the hefty $4.3 billion settlement with Binance from the Department of Justice, Bitcoins initially sent out mixed signals. But as the dust settled, it became evident that unlike FTX, Binance wasn't experiencing a significant outflow. Indeed, Bitcoin reserves were down by 17% initially, but inflow has started picking up since; currently up by nearly 1%. This is a stark contrast to FTX, whose Bitcoin reserves shrunk by an alarming 99.9% amid its liquidity crisis in November 2022 and hasn't seen an upturn since then. Despite their reserves being at their lowest since 2017, Binance still holds the largest stash of Bitcoin in comparison to its counterparts. Markus Levin, co-founder of XYO Network, points out that Bitcoin's consistent upward trajectory, despite slight drawbacks, indicates strong viewing. Circling back to the approval of a Bitcoin ETF - despite macroeconomic hurdles, Bitcoin continues to rise, notching up a year-to-date gain of 130.5% with increasing volatility. Analysts believe the binance-DOJ settlement could be a strong precedent for the approval of a Bitcoin ETF, and suggests that this settlement could bode well for the entire cryptocurrency market, effectively reining in the Wild West-like era previously dominating it. Although current market sentiment might not match the highs of last month, it remains overwhelmingly positive, indicating robust and sustained strength. Even as the Securities and Exchange Commission (SEC) remains reticent in approving a Bitcoin ETF despite a flurry of amendments and numerous aspirants, there's a growing anticipation around an approval generating as much as $600 billion in new demands. This excitement is spurred by crypto analysis firms predicting that an ETF approval could lead to $1 trillion increase in Bitcoin's market cap. Galaxy Digital further fuels this optimism by predicting a 74% price surge within the first year post the launch of the ETF. Meanwhile, institutional investors have been funneling investments into Bitcoin and cryptocurrency, pumping over $1.5 billion in the past year. Indeed, last week alone saw an influx of $311 million. Total weekly institutional investments in cryptocurrency reached a record $346 million, marking their highest since November 2021.

Published At

11/28/2023 7:01:32 PM

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