The Bitcoin price has surged to a 2-month high of $29,450 today, reflecting a 3.3% increase within the last 24 hours. While several factors could have contributed to this rally, four principal drivers appear to dominate discussions.<\/p>\n
There\u2019s palpable excitement within the community as rumors intensify about the US Securities and Exchange Commission (SEC) potentially approving the first-ever spot Bitcoin ETFs. Currently, the SEC is actively engaging with prominent applicants including Grayscale, BlackRock, Fidelity, Invesco, and Ark Invest, among others. This has never happened before in the long history of Spot Bitcoin ETF rejections. It appears that the market may be starting to cautiously price in aka \u201cfront-run\u201d the approval of a spot ETF.<\/p>\n
Just yesterday, BlackRock filed its updated ETF application, adding more fuel to the fire. As James Seyffart, a Bloomberg ETF expert, elucidated<\/a>, \u201cBlackRock filed an updated Bitcoin ETF prospectus early this morning which is likely their response to SEC comments like we\u2019ve seen from Ark, Fidelity, and others. Just more confirmation that issuers are in talks with the SEC.\u201d<\/p>\n Forecasts surrounding this potential approval are overwhelmingly bullish. Macro analyst Alex Kruger predicts<\/a> a 20%+ price surge on the day of approval, while trader Christopher Inks sets his sights between $38,000 to $40,000.<\/p>\n A recent CryptoQuant report posits<\/a> that Bitcoin spot ETFs could swell the market cap by as much as $1 trillion, stating, \u201cIf $150 billion in fresh capital enters the Bitcoin market, it could increase BTC\u2019s market cap by $450 billion to $900 billion.\u201d Meanwhile, Matrixport\u2019s research predicts<\/a> a Bitcoin price range between $42,000 and $56,000 post-SEC\u2019s approval of Blackrock\u2019s ETF.<\/p>\n In recent comments<\/a> that have undoubtedly affected the crypto markets, Federal Reserve Chair Jerome Powell indicated the possibility of the central bank suspending its historic run of interest-rate hikes as long as there\u2019s steady progress on inflation and rate hikes might be put on hold. Powell emphasized the importance of the 2% inflation target and addressed the balance between avoiding a potential recession and keeping inflation in check.<\/p>\n While raising rates too high risks a major recession, not raising rates high enough risks another inflationary breakout. According to current market forecasts, the Fed will therefore not raise interest rates at the next FOMC meeting from October 31 to November 1 and will continue to monitor inflation data. This stance from the Fed likely provided a bullish nudge to Bitcoin and the larger crypto market.<\/p>\n Yesterday, the price of gold rose again by 1.3%, and since October 6, even by a whopping 10%. As NewsBTC reported<\/a> yesterday, the gold price could be a leading indicator of the gold price. When gold rises, Bitcoin follows as a hedge against the chaos in the US government bond market and global crises and wars.<\/p>\n Accordingly, Charles Edwards, founder of Capriole Investments, remarked<\/a> via X (formerly Twitter) stating \u201cThe market is starting to price in the Fed\u2019s overtightening and weakening economics.<\/p>\n Combined with geopolitical tensions plus war, the need for QE in the future is increasing rapidly. This is causing insurance assets (Gold, Bitcoin) to absolutely rip in unison. When both of these assets move together like this, it\u2019s often the start of something very big.\u201d<\/p>\n According to data<\/a> from Coinglass, roughly $21 million in Bitcoin shorts were liquidated in the recent move up. Thus, the futures market has played a role in this price move.<\/p>\n Renowned crypto trader CrypNuevo stated<\/a>\u00a0via X, \u201cAll our liquidation levels to the upside from yesterday have been hit\u2026 Asia pumped and 12h liquidation chart is showing liquidations at the same level.\u201d He also cautioned, \u201cCurrent long-short open positions ratio is very high atm (+4 times more longs than shorts).\u201d<\/p>\n At press time, BTC saw a slight retracement and was trading at $29,233.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n The Bitcoin price has surged to a 2-month high of $29,450 today, reflecting a 3.3% increase within the last 24 hours. While several factors could have contributed to this rally, four principal drivers appear to dominate discussions.<\/p>\n There\u2019s palpable excitement within the community as rumors intensify about the US Securities and Exchange Commission (SEC) potentially approving the first-ever spot Bitcoin ETFs. Currently, the SEC is actively engaging with prominent applicants including Grayscale, BlackRock, Fidelity, Invesco, and Ark Invest, among others. This has never happened before in the long history of Spot Bitcoin ETF rejections. It appears that the market may be starting to cautiously price in aka \u201cfront-run\u201d the approval of a spot ETF.<\/p>\n Just yesterday, BlackRock filed its updated ETF application, adding more fuel to the fire. As James Seyffart, a Bloomberg ETF expert, elucidated<\/a>, \u201cBlackRock filed an updated Bitcoin ETF prospectus early this morning which is likely their response to SEC comments like we\u2019ve seen from Ark, Fidelity, and others. Just more confirmation that issuers are in talks with the SEC.\u201d<\/p>\n Forecasts surrounding this potential approval are overwhelmingly bullish. Macro analyst Alex Kruger predicts<\/a> a 20%+ price surge on the day of approval, while trader Christopher Inks sets his sights between $38,000 to $40,000.<\/p>\n A recent CryptoQuant report posits<\/a> that Bitcoin spot ETFs could swell the market cap by as much as $1 trillion, stating, \u201cIf $150 billion in fresh capital enters the Bitcoin market, it could increase BTC\u2019s market cap by $450 billion to $900 billion.\u201d Meanwhile, Matrixport\u2019s research predicts<\/a> a Bitcoin price range between $42,000 and $56,000 post-SEC\u2019s approval of Blackrock\u2019s ETF.<\/p>\n In recent comments<\/a> that have undoubtedly affected the crypto markets, Federal Reserve Chair Jerome Powell indicated the possibility of the central bank suspending its historic run of interest-rate hikes as long as there\u2019s steady progress on inflation and rate hikes might be put on hold. Powell emphasized the importance of the 2% inflation target and addressed the balance between avoiding a potential recession and keeping inflation in check.<\/p>\n While raising rates too high risks a major recession, not raising rates high enough risks another inflationary breakout. According to current market forecasts, the Fed will therefore not raise interest rates at the next FOMC meeting from October 31 to November 1 and will continue to monitor inflation data. This stance from the Fed likely provided a bullish nudge to Bitcoin and the larger crypto market.<\/p>\n Yesterday, the price of gold rose again by 1.3%, and since October 6, even by a whopping 10%. As NewsBTC reported<\/a> yesterday, the gold price could be a leading indicator of the gold price. When gold rises, Bitcoin follows as a hedge against the chaos in the US government bond market and global crises and wars.<\/p>\n Accordingly, Charles Edwards, founder of Capriole Investments, remarked<\/a> via X (formerly Twitter) stating \u201cThe market is starting to price in the Fed\u2019s overtightening and weakening economics.<\/p>\n Combined with geopolitical tensions plus war, the need for QE in the future is increasing rapidly. This is causing insurance assets (Gold, Bitcoin) to absolutely rip in unison. When both of these assets move together like this, it\u2019s often the start of something very big.\u201d<\/p>\n#2 Jerome Powell\u2019s Latest Speech<\/h2>\n
#3 Bitcoin\u2019s Correlation to Gold<\/h2>\n
#4 Shorts Getting Liquidated<\/h2>\n
#1 Expectations Of A Spot Bitcoin ETF Approval<\/h2>\n
#2 Jerome Powell\u2019s Latest Speech<\/h2>\n
#3 Bitcoin\u2019s Correlation to Gold<\/h2>\n
#4 Shorts Getting Liquidated<\/h2>\n