Why Bitcoin Price Blasted Past $66,500: Key Reasons Revealed
15 Oktober 2024 - 2:30PM
NEWSBTC
Bitcoin experienced a significant surge, climbing from a low of
$62,050 on Sunday to a peak of $66,500 late Monday. As of Tuesday,
the BTC price is slightly correcting below this key resistance
level, but hovering above $65,000. Several critical factors have
contributed to the rally, including a short squeeze coinciding with
the upcoming US elections, strong demand in the spot Bitcoin
market, and substantial inflows into US spot Bitcoin Exchange
Traded Funds (ETFs). #1 Short Squeeze And US Election Influence
Yesterday’s price surge can be partly attributed to the liquidation
of leveraged short positions. Singapore-based trading firm QCP
Capital writes in their latest investor note that nearly $80
million worth of Bitcoin and Ethereum leveraged shorts were
liquidated, applying upward pressure on the market. While some
speculate that the postponement of Mt. Gox’s repayment deadline to
October 2025 played a role, this news was already published on
Friday, suggesting other factors were at play during Monday’s
rally. Related Reading: Bitcoin Open Interest Hits Record $19.8
Billion—Is The $100K Rally About to Begin? “Although there could be
many factors that could explain today’s move, it is quite an
interesting time if we look at historical price action. We are in
the middle of October and just three weeks away from the US
elections,” QCP Capital notes. In both 2016 and 2020, Bitcoin
remained in a tight trading range for months before initiating a
significant rally approximately three weeks before the US Election
Day. In 2016, Bitcoin doubled in price from $600 by the first week
of January following the election. Similarly, in 2020, it surged
from $11,000 to a high of $42,000 by January. This year,
October—often referred to as “Uptober” due to its historically
strong performance—has been underwhelming, with Bitcoin up just
1.2% compared to an average of 21%. The current rally, occurring
three weeks before the US elections, suggests that history might be
repeating itself, potentially leading to further price appreciation
as investor optimism builds. #2 Strong Demand For Bitcoin For the
first time since mid-2023, Bitcoin’s buy orders are matching sell
orders in spot market order books across exchanges. Ki Young Ju,
Founder and CEO of CryptoQuant, highlighted this development via X:
“Bitcoin buy walls on all exchanges are now strong enough to
neutralize sell walls.” This shift marks a significant change from
the trend observed since May 2021. “Data from the last cycle
(2020-2022). It’s the accumulated difference between quoted buy and
sell volumes. Since May 2021, sell walls had been consistently
thicker than buy walls until the end of the cycle,” Young Ju
shared. #3 Surge In Spot Bitcoin ETF Inflows Monday witnessed one
of the highest Bitcoin ETF inflows on record, totaling $555.9
million—the largest net inflow day since June 3. This substantial
capital influx was spread among several major asset managers.
BlackRock received $79.5 million, Fidelity attracted $239.3
million, Bitwise accumulated $100.2 million, Ark Invest saw inflows
of $69.8 million and the Grayscale Bitcoin Trust (GBTC) experienced
inflows of $37.8 million. Related Reading: Bitcoin Nears Key
Breakout: Last Three 200-Day MA Crossings Triggered ‘Parabolic Bull
Runs’ Nate Geraci, President of The ETF Store and host of the ETF
Prime podcast, commented on these inflows via X: “Monster day for
spot btc ETFs… $550mil inflows. Now approaching *$20bil* net
inflows in 10mos. Simply ridiculous & blows away every
pre-launch demand estimate. This is NOT “degen retail” $$$ IMO.
It’s advisors & institutional investors continuing to slowly
adopt.” At press time, BTC traded at $65,750. Featured image
created with DALL.E, chart from TradingView.com
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