Boost

United

Bitcoin

Winter

Impact

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin reaches a new all-time high of $69,300, marking a significant recovery since its downturn in November 2021.</li>
 <li>Bitcoin’s price rise is attributed to factors including short liquidations and the impact of Bitcoin exchange-traded funds (ETFs).</li>
</ul>
<p>Bitcoin recently achieved a new all-time high, reaching $69,300. <br> This milestone comes around two and a half years after the peak of the previous bull market.</p>
<h2 id="recovery-from-crypto-winter">Recovery from Crypto Winter</h2>
<p>November 2021 marked a period of decline for Bitcoin, which subsequently entered a prolonged crypto winter. <br> However, the beginning of 2023 brought signs of recovery, and Bitcoin’s price has been on a steady rise since.</p>
<p>Once an asset surpasses its previous all-time high, it enters a new phase known as price discovery. <br> In this phase, it’s uncertain what the future holds as there are no established resistance or support levels to guide traders.</p>
<h2 id="impact-of-short-liquidations-and-etfs">Impact of Short Liquidations and ETFs</h2>
<p>The recent surge in Bitcoin’s price has been partly attributed to short liquidations. <br> When shorts are liquidated, traders who had bet on Bitcoin’s price falling are forced to buy back the Bitcoin they sold, often at a higher price.</p>
<p>This sudden increase in buying pressure can cause Bitcoin’s price to rise rapidly, a phenomenon known as a short squeeze. <br> Such events can significantly amplify price movements and volatility in the Bitcoin market.</p>
<p>The rapid increase in Bitcoin’s price has also been influenced by the introduction of Bitcoin ETFs in the United States. <br> Inflows into these financial products have been consistent since their approval by the United States Securities and Exchange Commission.</p>
<p>For instance, BlackRock’s iShares Bitcoin Trust crossed $10 billion in assets under management in just over seven weeks, a feat that took the first U.S. gold-backed ETF two years to achieve. <br> The consistent capital injection into Bitcoin ETFs indicates a strong demand from Wall Street and institutional investors.</p>
<p>The increased demand for Bitcoin from these ETFs leads to more Bitcoin being purchased from the open market, further driving up its price. <br> This trend shows no signs of slowing down, with U.S.-based Bitcoin ETFs recently seeing net inflows of $562 million in a single day.</p>

BTC ETFs Boost Bitcoin to Unprecedented Highs

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