The Bitcoin price has risen as high as $38,012 (on Binance), recording a marginally higher high. Here are the main reasons for the latest surge in BTC price.
#1 Euphoria Over Potential ETF Approvals
The crypto market has been electrified by the possibility of the US Securities and Exchange Commission (SEC) approving several spot Bitcoin ETFs. With the approval window having opened on November 9 until Friday (November 17), experts like James Seyffart and Eric Balchunas from Bloomberg estimate a 90% chance of approval for multiple filings by January 10, 2024, the final deadline for Ark Invest’s filing.
Remarkably, the SEC is facing a significant deadline cluster, with three applications for spot ETFs from Franklin Templeton and Hashdex (due November 17), and GlobalX (due November 21) awaiting decisions. Amidst this tense backdrop, Hashdex emerged as the first to encounter a delay, as the SEC postponed their decision on the conversion from a futures ETF to an ETF that holds both futures and spot.
This news momentarily jolted the market, resulting in a sharp but brief decline in BTC’s price, which plummeted from $37,400 to $36,780 in a swift five-minute span. However, the market’s resilience was quickly demonstrated as Bitcoin not only recovered but exceeded its pre-announcement price within 25 minutes.
#2 Unprecedented Institutional Interest In Bitcoin
Institutional demand for Bitcoin has reached new heights, particularly through exchange-traded products (ETPs). The recent BlackRock Bitcoin spot ETF filing significantly contributed to this surge. “The Assets Under Management via ETPs have increased by 27,095 BTC, bringing the total to a record 204,170 BTC, equivalent to roughly 7.4 billion dollars,” reports K33 research. This trend indicates a growing institutional embrace of Bitcoin as a viable investment asset.
#3 Supply And Demand Dynamics
Data from LookIntoBitcoin highlights a remarkable trend: over 70% of Bitcoin has not been moved for at least one year. “This is a historic moment that underscores the strength of Bitcoin’s tokenomics,” the data provider shared. They further elaborated, “As long as this HODL Wave continues to climb, it suggests a bullish market outlook with long-term investors showing no signs of selling their holdings. This is particularly significant considering the upcoming Bitcoin Halving event and the growing institutional interest.”