Bitcoin's price saw an increase of 4% on Friday, exceeding the $30,000 mark to reach $30,074, a peak not witnessed since August 2023. This surge was attributed to four significant factors.
The first factor is the potential approval of spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). This possibility has led to market speculation, with both BlackRock (NYSE:BLK) and Fidelity updating their respective Bitcoin ETF (TSX:EBIT) applications. The news of these updates and the anticipation of Spot Bitcoin ETF approval, which could be announced at Benzinga’s Future of Digital Assets conference on November 14, prompted a bullish market sentiment.
James Seyffart confirmed that issuers are responding to SEC feedback while Alex Kruger and Christopher Inks predict substantial price surges on the day of approval. Matrixport’s research suggests that Bitcoin's price could range between $42,000 and $56,000 post-approval. A report from CryptoQuant indicates that the greenlighting of these ETFs could potentially inflate the market cap by up to $1 trillion.
The second factor contributing to the increase in Bitcoin's price is Federal Reserve Chairman Jerome Powell's comments on suspending interest-rate hikes if inflation progress remains steady. Powell emphasized the need for balancing inflation control while avoiding recession risks, providing a bullish push for Bitcoin.
The third factor is the rising gold price, which has seen an increase of 10% since October 6. Bitcoin often follows gold as a market chaos hedge, influencing its price in turn. Charles Edwards noted the increasing need for such insurance assets due to geopolitical tensions and economic weakening.
Lastly, data from Coinglass shows about $21 million in Bitcoin shorts were liquidated recently, with CrypNuevo highlighting a high long-short open positions ratio.
Despite these optimistic shifts, Bitcoin's price has slightly fallen under $30,000. Other cryptocurrencies such as Ethereum and BNB recorded rises of 3.3% and 1% respectively, while XRP soared by 7% after the SEC's request to dismiss lawsuits against Ripple’s executives. Furthermore, Solana's SOL/USD saw a substantial rise of 10.58% on Friday.
Joe Edwards from Enigma Securities, as mentioned by CoinDesk, predicts a potential "sell the news" event post-approval. This suggests that while anticipation for the ETF approval has driven Bitcoin's price up, the actual approval could trigger a sell-off leading to a temporary price drop.
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