Why Did Bitcoin Price Soar To $36,800?
The Bitcoin price has seen a significant increase of more than 4% within the last 24 hours. The price has risen to $36,800. Several key factors have contributed to this rally.
#1 Spot Bitcoin ETF Buzz
The surge in BTC’s price can be attributed to renewed speculations about the potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). Yesterday, Bloomberg’s James Seyffart put out a new note, highlighting that the SEC is in a unique position within the next eight days where they could approve all 12 spot ETF applications, as Bitcoinist reported.
Seyffart further pointed out that the SEC has the opportunity to approve 9 applications (excluding Global X Bitcoin Trust, Hashdex Bitcoin ETF, and Franklin Bitcoin ETF) at any point until January 10, 2024. Bloomberg’s Seyffart and Eric Balchunas still estimate a 90% chance of approval for at least some of the pending applications before January 10, 2024.
The ETF buzz was further fueled by news that Grayscale is in active discussions with the SEC regarding the conversion of its GBTC trust into a spot ETF. Grayscale’s recent court victory over the SEC on August 29 has added to the anticipation.
#2 Bitcoin Whales
There has been a notable increase in activities by Bitcoin whales, which can be interpreted as a sign of market optimism. Crypto analyst MartyParty pointed out a pattern of substantial purchases, with a whale reportedly buying $15 million of BTC every three hours, suggesting anticipation of positive developments in the ETF front.
Keith Alan from Firecharts observed that Bitcoin whales are actively shifting liquidity in the market, with noticeable changes in bid levels. He stated, “FireCarts shows BTC whales continuing to move liquidity around the order book. Bids that were moved down to $34k earlier have now returned to the $34.5k level.”
Additionally, an increase in TWAP (Time-Weighted Average Price) buying on Coinbase has been reported. Crypto analyst Exitpump noted, “BTC Spot Delta: Someone on Coinbase twapping / market buying.” TWAP buying is a trading strategy used by big players to execute large orders in a way that aims to minimize price impact and achieve an average execution price close to the market average over a specified time period.
#3 Short Squeeze
The Bitcoin market has also experienced a significant short squeeze, with approximately $51 million in BTC short positions being liquidated today (according to Coinglass data, as of press time). This amount marks the largest short squeeze since October 23 and 24, when $161 million and $68.5 million in Bitcoin short positions were liquidated on consecutive days, leading to a substantial price increase of more than 18%. Today’s short squeeze certainly caught some traders on the wrong foot who believed that $36,000 – the previous range high – was a “safe” short trade.
#4 Bitcoin Supply Dynamics
The supply of Bitcoin on exchanges has been steadily decreasing, reaching a six-year low at the end of October. Daan Crypto Trades, a noted crypto trader, highlighted the downward trend in Bitcoin inflows to exchanges. He remarked:
Bitcoin Exchange inflows have been trending down on the higher timeframe. Compared to for 2021-2022 there’s a clear trend down in BTC inflows to exchanges. Would expect that to start ticking back up once the bull market really gets going and people start taking profits.
Furthermore, on-chain data reveals that a significant 76% of the Bitcoin supply is currently held by long-term holders, who haven’t moved their coins for over 155 days. Analyst Dylan LeClair emphasized the strength of hodlers, noting that a staggering 88.5% of the supply has remained static over the last three months.
“The hilarious thing is that 88.5% of the Bitcoin supply hasn’t moved in the last three months. Wall Street is gonna have to really pump this thing to get hodlers to part with their coins,” LeClair stated.
At press time, BTC traded at $36,585.
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FAQs
Bitcoin's price changes because of its supply, the market's demand, media and news, and regulatory changes. Some research suggests that the cost of producing a bitcoin also influences its prices, but most reports used assumed data rather than facts.
What is causing the surge in bitcoin? ›
A major factor in bitcoin's rise since the start of the year has been the approval by the US financial regulator in January of exchange-traded funds [ETFs] – a basket of assets that can be bought and sold like shares on an exchange – that track the price of bitcoin.
What is the highest price of bitcoin ever recorded? ›
The all-time high of Bitcoin is $73,780.07. This all-time high is highest price paid for Bitcoin since it was launched.
How high can bitcoin go? ›
“Our analysis forecasts a conservative price objective of $100,000-$120,000 to be achieved by Q4 2024, and the cycle peak to be achieved sometime in 2025 in terms of total crypto market capitalization. The ETFs have introduced passive demand which means demand is coming from investors that is largely price agnostic.”
How much will 1 Bitcoin be worth in 2030? ›
Bitcoin (BTC) Price Prediction 2030
According to your price prediction input for Bitcoin, the value of BTC may increase by +5% and reach $ 86,256.26 by 2030.
How high will Bitcoin go in 2024? ›
The 2024 Bitcoin halving is expected to happen on April 17, 2024, and is being highly anticipated. Experts, including Robert Kiyosaki, have predicted that Bitcoin could reach $100,000 by June 2024, while Standard Chartered suggests that Bitcoin could soar to $200,000 by the end of the year.
Who owns the most bitcoin? ›
Who owns the most Bitcoin in the world? The top Bitcoin holder is still believed to be Satoshi Nakamoto, the anonymous creator of Bitcoin, who reportedly holds around 1.1 million BTC across many wallets. Despite this large holding, the top 10 holders collectively only possess about 5.5% of the total Bitcoin supply.
What drives bitcoin prices? ›
Bitcoin's price increases when demand exceeds supply and decreases when demand falls. Other factors such as the cost of producing bitcoin through mining, regulations, news, and competition from other cryptocurrencies can influence the supply and demand and thus, influence the bitcoin's price.
Who benefits from bitcoin mining? ›
Miners who successfully add blocks to a blockchain automatically receive transaction processing fees and new digital tokens. Creates economic opportunities. The accessibility of crypto mining is creating new business opportunities for tech-savvy people around the world.
What's the lowest Bitcoin has ever been? ›
The lowest closing price for Bitcoin (BTC) all-time was $0.05, on July 18, 2010. The latest price is $64,727.64.
Annual returns
| Year | Return |
|---|
| 2021 | 72.70% |
| 2020 | 270.28% |
| 2019 | 97.82% |
| 2018 | -72.13% |
8 more rowsThe time it takes to mine 1 Bitcoin depends on your computing power
| Number of mining rigs | Hashrate | Time to mine 1 Bitcoin |
|---|
| 100 | 12,000 TH/s | 51 days |
| 500 | 60,000 TH/s | 10 days |
| 1,000 | 120,000 TH/s | 5 days |
| 5,000 | 600,000 TH/s | 1 day |
4 more rowsFeb 16, 2024
By this logic, Bitcoin hitting $100,000 isn't just a possibility—it's a near certainty. If the idea of financial cycles doesn't grab you, there's also the theoretical argument that Bitcoin's basic value proposition has grown stronger each year.
How much will $1 Bitcoin be worth in 2025? ›
Bitcoin Overview
| Year | Minimum Price | Average Price |
|---|
| 2024 | $84,475.55 | $87,676.23 |
| 2025 | $121,440.85 | $124,947.50 |
| 2026 | $166,264.37 | $171,262.87 |
| 2027 | $251,829.81 | $258,680.13 |
8 more rowsIf Wood is correct and Bitcoin does reach $3.8 million by 2030, an investment of $1,000 would be worth over $60,000. This would result in a compound annual growth rate (CAGR) of over 100%. Read Next: Bitcoin has jumped another 45% already this year – how much would you need to get started today?
Who owns the most Bitcoin? ›
Who owns the most Bitcoin in the world? The top Bitcoin holder is still believed to be Satoshi Nakamoto, the anonymous creator of Bitcoin, who reportedly holds around 1.1 million BTC across many wallets. Despite this large holding, the top 10 holders collectively only possess about 5.5% of the total Bitcoin supply.
Will Bitcoin crash after halving? ›
The bitcoin (BTC) price is likely to weaken after the reward halving, a quadrennial event that slows the rate of growth in bitcoin supply and looks set to occur around April 19-20, Wall Street giant JPMorgan (JPM) said in a research report on Wednesday.
Is Bitcoin a buy right now? ›
Unfortunately, it's also incredibly volatile. For that reason, while current market conditions are favorable for anyone considering buying Bitcoin, it is an asset you should purchase only at your own risk. Because while Bitcoin may have the potential for significant returns, you may also lose most of your investment.
What is the Bitcoin prediction for 2025? ›
Bitcoin price prediction 2025
The Bitcoin price prediction for 2025 is currently between $ 65,072 on the lower end and $ 159,779 on the high end. Compared to today's price, Bitcoin could gain 152.54% by 2025 if BTC reaches the upper price target.
