Bitcoin (BTC) price is up today, rising over $28,700 with a sharp upward candle that sent the price to a 2-month high. The Bitcoin price increase today comes after BTC held the key $28,000 level amid institutional investor amendments to multiple spot Bitcoin ETF applications and retail investors’ hope in the upcoming Bitcoin supply halving narrative.
Let’s look into the reasons why Bitcoin price is up today.
Institutional interest in Bitcoin boosts market sentiment
Despite a bevy of macro headwinds, a rush of spot Bitcoin ETF amendments in mid-October helped keep BTC price above $28,000, boosting market sentiment.
After U.S. Court of Appeals Circuit Judge Neomi Rao sided with Grayscale Bitcoin Trust (GBTC) in its case against the U.S. Securities and Exchange Commission (SEC) on Aug. 29, many large institutions filed for ETFs. On Oct. 14, Grayscale was dealt another victory as the SEC is reported not to appeal this decision. The decision not to appeal may have led to Grayscale filing for a new spot Bitcoin ETF on Oct. 19.
To date, the SEC has refused to approve a spot Bitcoin ETF despite numerous applicants including BlackRock, Fidelity, Cathie Wood’s ARK and 21Shares which has filed for approval three times.
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The Bitcoin halving narrative grows
The next Bitcoin halving is projected to take place in April 2024 and analysts continue to debate whether or not the event will produce bullish outcomes for BTC price this time.
According to Capriole Investments,
“Through Bitcoin’s 14 years of cyclical history, all of its returns and more were accounted for in the 12-18 month period following each Halving. Investing in the 4-6 months prior to each Halving saw even greater 12 month performance in 2020.”
A Bitcoin ETF approval could help solve the liquidity issue, generating $600 billion in new demand according to reports. A recent report from Capriole Investments suggested that gold instantly sprung out of a bear market to generate a 350% return after a Gold ETF was approved.
Bitcoin on exchanges continues to drop
Coinciding with Bitcoin price gains, the BTC supply on exchanges continues to remain below the Sept. 4 monthly peak. Exchanges have shed over 70,000 Bitcoin since that monthly peak.
The market perceives coins leaving crypto exchanges as a bullish signal, given traders withdraw their BTC typically when they want to hold it in self-custody long-term. On Oct. 19, long-term Bitcoin holders hit 76% of all BTC ownership for the first time in history.
Related: Bitcoin price holds $28K range as institutional investor maneuvering boosts sentiment
With Bitcoin continuing to leave exchanges, liquidations tend to have a strong impact on price. In the past 24-hours alone, over $10.1 million BTC shorts have been liquidated with over $8.5 million in shorts being liquidated in a 12-hour timeframe.
Bitcoin price showing some bullish momentum is helping boost market sentiment. The Bitcoin Fear & Greed Index shows the market has shifted from fearful to neutral, gaining 7-points in a week.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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