Rally

Bitcoin ETF

Bitcoin

Spot

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<ul>
 <li>Bitcoin’s price is climbing to new highs, approaching $39,000 for the first time in over a year, creating excitement in the cryptocurrency market.</li>
 <li>One significant driver of the substantial increase in Bitcoin’s price is market sensitivity to the potential approval of a spot Bitcoin ETF.</li>
 <li>According to analysts from Capriole and other hedge funds, the current market sensitivity is seen as a positive indicator for Bitcoin’s price.</li>
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<p><strong>Bitcoin price has increased significantly in recent days and managed to approach 39K dollars: What are the reasons for this rise?</strong></p>
<h2 id="strong-bitcoin-price-surge-reasons-behind-the-rally-strong"><strong>Bitcoin Price Surge: Reasons Behind the Rally</strong></h2>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-126542" src="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?resize=696%2C392&amp;quality=70&amp;ssl=1" alt="Bitcoin-BTC" width="696" height="392" srcset="https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?w=1280&amp;quality=70&amp;ssl=1 1280w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?resize=300%2C169&amp;quality=70&amp;ssl=1 300w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?resize=1024%2C576&amp;quality=70&amp;ssl=1 1024w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?resize=768%2C432&amp;quality=70&amp;ssl=1 768w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?resize=150%2C84&amp;quality=70&amp;ssl=1 150w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?resize=696%2C392&amp;quality=70&amp;ssl=1 696w, https://i0.wp.com/en.coinotag.com/wp-content/uploads/2023/09/Bitcoin-BTC-44.webp?resize=1068%2C601&amp;quality=70&amp;ssl=1 1068w" sizes="(max-width: 696px) 100vw, 696px" data-recalc-dims="1"></p>
<p>Bitcoin’s price is climbing to new highs, approaching $39,000 for the first time in over a year, creating excitement in the cryptocurrency market. This surge is not a random event but a result of a combination of events and developments that reinforce trader confidence in Bitcoin.</p>
<p>One crucial factor in this surge is the resolution of the Binance dispute. The settlement between Binance and the U.S. Department of Justice, involving a $4.3 billion payment by the exchange, initially sent mixed signals to the market.</p>
<p>However, as the initial shock subsided, traders began to notice that Binance did not experience a massive outflow of funds similar to the liquidity crisis affecting FTX. This assurance led to a gradual increase in the flow of Bitcoin to Binance.</p>
<p>In particular, Galaxy Digital CEO Mike Novogratz sees the agreement as a clear positive for the crypto market. While Binance’s Bitcoin reserves initially decreased by 17%, they have since experienced an almost 1% increase. This stability in Binance’s Bitcoin reserves is a significant sign of restored market confidence.</p>
<h2 id="strong-expectation-of-spot-bitcoin-etf-approval-strong"><strong>Expectation of Spot Bitcoin ETF Approval</strong></h2>
<p>Another significant driver of the substantial increase in Bitcoin’s price is market sensitivity to the potential approval of a spot Bitcoin ETF. This sentiment has also been supported by past agreements, such as the one between Arthur Hayes and BitMEX, leading to optimism about the possibility of a spot Bitcoin ETF in the U.S. Approval of such an ETF is expected to bring substantial cash inflows into Bitcoin and further boost its price.</p>
<p>This expectation has increased with recent purchases, such as additional $600 million Bitcoin acquisitions by companies like MicroStrategy. According to analysts from Capriole and other hedge funds, the current market sensitivity is seen as a positive indicator for Bitcoin’s price, and technical analyses point to a significant price increase.</p>
<p>However, despite numerous applications from major players like BlackRock and Fidelity, the SEC has not yet approved a spot Bitcoin ETF, and the next review window is set for early January.</p>
<h2 id="strong-institutional-investor-inflow-strong"><strong>Institutional Investor Inflow</strong></h2>
<p>The current rally is also fueled by significant institutional investment in Bitcoin and other crypto assets. According to a report by CoinShares, institutional investors have invested over $1.5 billion in the crypto market in the last year.</p>
<p>In just the last week, Bitcoin received an inflow of $311 million from institutional investors, marking the largest weekly influx since November 2021. The redirection of institutional funds towards Bitcoin stands out as a significant sign of increased trust and interest in the cryptocurrency.</p>
<p>The fact that over $1.5 billion of the total investment of over $1.66 billion in the past year flowed into Bitcoin indicates a clear preference for Bitcoin among institutional investors compared to other cryptocurrencies.</p>
<p>The current Bitcoin rally is a multifaceted phenomenon arising from market reactions to the Binance agreement, expectations of spot Bitcoin ETF approval, and substantial institutional investment. These factors, combined, send a positive signal for the price of Bitcoin.</p>
<p>While closely monitoring the crypto world, ongoing developments and regulatory decisions will continue to play a crucial role in shaping the future of Bitcoin and its position in the financial market.</p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com/what-factors-triggered-the-upward-rally-in-bitcoin-price/">What Factors Triggered the Upward Rally in Bitcoin Price?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://en.coinotag.com">COINOTAG NEWS</a>.</p>
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What Factors Triggered the Upward Rally in Bitcoin Price?

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