Bitcoin price continues to rise in recent days. Bitcoin, reaching the highest level in two months, flirted with $28,700 today. This rise occurred after institutional investors made changes to multiple spot Bitcoin ETF applications and individual investors’ hopes for the upcoming Bitcoin halving event. Of course, the biggest factor was the surpassing of the $28,000 resistance.
Eyes are on April 2024 for the Bitcoin halving event. Although time is running out for this event expected to take place on this date, many analysts are discussing the impact of this event on Bitcoin’s price. Analysts at investment firm Capriole Investments explained this situation with the following statements;
“Throughout Bitcoin’s 14-year cyclical history, all returns and more have occurred in the 12-18 month period following each halving event. Investing in the previous 4-6 month period before each halving event provided even higher 12-month performance in 2020.”
According to reports, approval of a Bitcoin ETF can help solve the liquidity issue. With this development, many analysts expect to see at least $600 billion in demand in the market. According to a recent report by Capriole Investments, it was claimed that the approval of a gold ETF resulted in a 350% return on gold’s price.
In addition to the increase in Bitcoin price, the Bitcoin supply on exchanges continues to remain below the monthly peak on September 4th. After this monthly peak, over 70,000 Bitcoin outflows were observed on exchanges.
The market perceives tokens exiting from crypto exchanges as a bullish signal. Investors withdraw their Bitcoins from centralized exchanges when they want to hold them for the long term. On October 19th, long-term Bitcoin holders for the first time in history owned 76% of the total Bitcoin supply.
As Bitcoin continues to leave exchanges, liquidations tend to have a strong impact on price. In just 24 hours, over $10.1 million worth of Bitcoin short contracts were liquidated, and in a 12-hour period, over $8.5 million worth of short contracts were liquidated.
The slight upward momentum in Bitcoin’s price helps increase market sensitivity. The Bitcoin Fear and Greed Index shows that the market has transitioned from fear to neutrality, gaining 7 points within a week.