Bitcoin Price Surges 5% as Institutional Interest Grows and Exchange Supply Decreases
Summary:
Bitcoin's price surges over 5% today, reaching a September high of $26,500 after hitting a 3-month low. Institutional interest and decreasing supply on exchanges contribute to the upward momentum. Liquidations of BTC shorts and a high short-to-long ratio indicate the potential for a short-squeeze and further price increase. However, market sentiment remains fearful, according to the Bitcoin Fear & Greed Index. Readers should conduct their own research and assess risk before making any investment decisions.
Bitcoin (BTC) price surged today, experiencing a 5% increase as the price reached a September high of over $26,500 following a recent dip. The rise in Bitcoin's price to over $26,000 was seen as a significant level for traders and analysts to watch.
One of the reasons behind Bitcoin's price increase is the growing institutional interest in the cryptocurrency. Following a court ruling in favor of Grayscale Bitcoin Trust (GBTC), many large institutions have filed for Bitcoin exchange-traded funds (ETFs). Companies like BlackRock and Fidelity Investments have shown interest in Bitcoin, with Franklin Templeton being the latest to file for a spot Bitcoin ETF. However, the SEC has yet to approve any spot Bitcoin ETF applications, despite multiple attempts from various institutional players.
In addition to institutional interest, the supply of Bitcoin on exchanges continues to decrease. This is seen as a positive sign by the market, as it indicates that traders are withdrawing their BTC from exchanges to hold it in self-custody for the long term. On-chain data also shows a record number of wallets holding 0.1 BTC, further suggesting that investors are positioning themselves for a potential price rally.
The recent liquidations of BTC shorts have also contributed to the surge in Bitcoin's price. Over the past 24 hours, more than $38.1 million worth of BTC shorts have been liquidated, with a significant portion occurring within a 12-hour timeframe. Despite this losing streak for short-sellers, a majority of the futures market remains short on Bitcoin, creating the possibility of a short-squeeze and further upward pressure on the price.
While Bitcoin's recent price movement and positive factors may indicate bullish momentum in the short-term, the market sentiment, as measured by the Bitcoin Fear & Greed Index, still leans towards fear. It is important for readers to conduct their own research and be aware of the risks associated with investments and trading decisions.
Published At
9/12/2023 7:22:36 PM
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