3 Reasons Bitcoin's Price Surged on Wednesday
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3 Reasons Bitcoin's Price Surged on Wednesday

1 year ago

Excitement over ETFs is building, George Soros' hedge fund now owns cryptocurrencies, and it's October.

3 Reasons Bitcoin's Price Surged on Wednesday

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Wednesday was a largely flat day on Wall Street, but that didn’t stop Bitcoin rallying 8% in the space of 24 hours — breaking $55,000 for the first time since May.

But why is the world’s biggest cryptocurrency in the ascendancy, and could further upside lie ahead? Here are three reasons why BTC’s price is up. 

1. Excitement over ETFs is Building 

Despite the U.S. Securities and Exchange Commission delaying its decision on four Bitcoin exchange-traded funds until later this year — November and December — optimism is growing that the U.S. will approve an ETF this month. 

According to Bloomberg Intelligence analyst Eric Balchunas, there is a “75% chance” that the ProShares Bitcoin Strategy ETF will be given the green light on Oct. 18. 

Although this is certainly a move in the right direction, it’s only based on BTC futures.

Approval of ETFs — especially those that are physically backed by Bitcoin — are seen as a significant milestone. That’s because of how it would allow institutional investors to gain exposure to the cryptocurrency without having to own the underlying asset.

2. Soros Fund is Trading Bitcoin 

Another development that turned heads on Wednesday was the news that a hedge fund controlled by the billionaire investor George Soros now trades cryptocurrencies.

Speaking to Bloomberg, the CEO and chief investment officer of Soros Fund Management, Dawn Fitzpatrick confirmed that the institution owns “some coins, but not a lot.” She added:

“I’m not sure Bitcoin is viewed only as an inflation hedge here. It's crossed the chasm to mainstream.”

3. It’s October

And let’s not forget about the crucial role that seasonality plays in Bitcoin’s price.

Over the past eight Octobers, BTC has secured double-digit gains in all but two of them.

Meanwhile, on a quarterly basis, Q4 tends to be the time when fireworks fly for Bitcoin. 

Just six days into the final three months of the year, BTC has gained 25.94%. By comparison, its price raced up by 168% between October and December 2020.
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