Blog

Bitcoin prices have exploded higher overnight, nearing $38,000, with the renewed bullish tone attributed to a combination of factors, including resurgent institutional interest, growing adoption, and a favorable macroeconomic climate.

Source: Bloomberg

For context, this price move has now erased the losses since the Terra stablecoin crisis 18 months ago…

Source: Bloomberg

As CoinTelegraph reports, while not expected until 2024, today, Nov. 9, marks the start of the period during which the long-awaited spot Bitcoin ETF approval announcement from regulators could theoretically come.

Reacting to Seyffart, financial commentator Tedtalksmacro agreed.

However, Bloomberg's Seyffart noted that even if 19b-4 is approved, an S-1 approval could take weeks or months between approval and launch.

A total of 12 asset managers have filed for a spot Bitcoin ETF with the SEC.

Additionally, short-sellers might be exiting positions, fueling the move higher.

As CoinDesk reports, data shows just under $50 million in liquidations occurred in a four-hour period during early Asian trading hours, creating a "short squeeze"

Most notably, as Goldman Sachs' Crypto team points out, initial market data suggests that market activity was heavily institutional with four main indicators:

James Van Straten, research and data analyst at crypto insights firm CryptoSlate, wrote in part of his latest research, referencing data from on-chain analytics firm Glassnode, which showed U.S. buyers sustaining the rally.

The $37,000 milestone sets up the more significant $40,000 psychological barrier to be broken, instilling a renewed sense of optimism in the cryptocurrency community.

Meanwhile, Ethereum is also soaring higher, touching $2000 for the first time since July as interest in DeFi, and more specifically 'yield farming' begins to emerge once again…

As Bloomberg reports, yield farming was once a popular method for crypto projects to bootstrap new users in a short amount of time. It was especially popular in the ultra-low-interest-rate environment during the Covid-19 pandemic. That changed when crypto prices tumbled and traditional interest rates rose. 

The surge in ETH has reverted its recent weakness against BTC…

As we tweeted on Oct 20th, the ETH/BTC cross was at a critical support level and today's price action suggests a push back above that…

The key question on investors’ minds now is whether the market has structurally changed?