Hey, fellow crypto enthusiasts!
Grab your seat belts because the crypto rollercoaster just took another thrilling turn.
Bitcoin, the undisputed leader of the digital currency realm, pulled off a jaw-dropping feat by surging $3,000 in a matter of hours, flaunting a challenge to the $38,000 mark.
Hold on tight as we break down the exhilarating ride that the crypto market has been on lately.
BTC’s Whirlwind Journey
Bitcoin, the granddaddy of cryptocurrencies, showcased its prowess with a massive leap about a week ago, hitting the $38,000 milestone for the first time in a year and a half.
However, the bears weren’t ones to be caught off guard.
Swiftly, they nudged the asset southward, causing a $2,000 drop in just a blink.
As the weekend approached, BTC managed to regain some lost ground, standing tall above $37,000 for several days.
But, as fate would have it, things took a dip on Tuesday and, especially, on Wednesday, pushing the cryptocurrency to a weekly low of $35,000.
Just when it seemed like a rocky road ahead, BTC found its footing, bouncing off the support level and embarking on another ascent.
This time around, Bitcoin didn’t just climb; it soared, adding a whopping $3,000 in less than a day and revisiting the coveted $38,000 zone.
As of now, it’s holding strong just $500 shy of that mark, boasting a market capitalization surge of about $30 billion, comfortably resting over $730 billion on CoinMarketCap.
Altcoins Catching the Green Wave
When Bitcoin decides to dance, the altcoins don’t stay wallflowers.
Stepping into the limelight are some familiar names like ETH, BNB, XRP, TRX, LINK, and LTC, all showing off gains of up to 4%.
Ethereum, in particular, took the lead, reclaiming the $2,000 level, while Binance Coin confidently leaped above $250.
But the real showstoppers weren’t the usual suspects.
Solana waltzed in with an impressive 11% surge, Cardano grooved with a 9% jump, Dogecoin strutted its stuff with a 6% increase, and Polkadot and Toncoin joined the party with 8% spikes each.
Uniswap, not to be left out, showcased a 5.5% rise, while Avalanche stole the spotlight with an extraordinary 27% daily surge, proudly trading well above $23.
In the grand scheme of things, the total crypto market cap didn’t want to be left behind in this performance, witnessing a remarkable increase of over $60 billion overnight, currently lounging close to $1.45 trillion on CoinMarketCap.
Bitcoin Ascent to $38,000: Decrypting the Factors
The grand question echoing through the crypto community is, why the sudden surge?
Let’s unravel the mysteries behind Bitcoin’s skyward journey to $38,000.
1. Euphoria Over Potential ETF Approvals
The crypto realm is buzzing with anticipation as the US Securities and Exchange Commission (SEC) contemplates approving several spot Bitcoin ETFs.
With the approval window open until November 17, experts like James Seyffart and Eric Balchunas from Bloomberg estimate a whopping 90% chance of approval for multiple filings by January 10, 2024, the final deadline for Ark Invest’s filing.
Tensions ran high when the SEC faced a cluster of deadlines, with applications from Franklin Templeton and Hashdex due on November 17, and GlobalX waiting until November 21.
Hashdex encountered a brief delay, causing a momentary dip in BTC’s price.
However, the market’s resilience was swift, with Bitcoin not only recovering but surpassing its pre-announcement price within 25 minutes.
— James Seyffart (@JSeyff) November 15, 2023
2. Unprecedented Institutional Interest In Bitcoin
Bitcoin has secured a place in the limelight, attracting institutional interest at unprecedented levels, especially through exchange-traded products (ETPs).
The recent filing of a BlackRock Bitcoin spot ETF significantly fueled this surge.
According to K33 research, the Assets Under Management via ETPs have surged by 27,095 BTC, totaling a record 204,170 BTC, equivalent to roughly $7.4 billion.
This surge signifies a growing institutional embrace of Bitcoin as a credible investment asset.
3. Supply and Demand Dynamics
A notable trend highlighted by LookIntoBitcoin reveals that over 70% of Bitcoin has not budged for at least a year.
This historic moment underscores the robustness of Bitcoin’s tokenomics.
As long as this HODL Wave continues, it suggests a bullish market outlook with long-term investors holding onto their assets.
This becomes particularly significant considering the upcoming Bitcoin Halving event and the escalating institutional interest.
4. Liquidity Injections by the Fed
Arthur Hayes, co-founder of BitMEX, weighs in on the significant liquidity injected into the market and its impact on cryptocurrencies.
With almost $200 billion added since November’s start, assets like Bitcoin are riding the liquidity wave.
Understanding the dynamics of RRP and TGA becomes crucial in predicting market movements, according to Hayes.
5. Inverse Correlation With The DXY
The inverse dance between Bitcoin and the U.S. Dollar Index (DXY) emerges as a noteworthy factor in Bitcoin’s recent surge.
As the DXY faced resistance and began its descent, Bitcoin’s value soared.
Crypto analyst Josh succinctly puts it, “Bitcoin PUMPS while the DXY DUMPS!”
As we catch up with the latest market update, BTC is holding strong at $37,467, wrestling with the ascending trend channel.
The crypto arena continues to be a stage where surprises unfold, and as always, the journey is as exciting as the destination.
So, buckle up, crypto enthusiasts, because the Bitcoin thrill ride in the digital realm is far from over!