This week has been notable for Bitcoin (BTC) as it experienced a significant price surge. After teasing below $92,000 earlier, Bitcoin’s price jumped over 4% within 24 hours, reaching a high of approximately $97,360. However, this bullish momentum saw a slight retracement, settling at $95,740 during the early Asian trading session on Thursday. The cryptocurrency community is keenly watching Bitcoin’s potential move towards the $100,000 mark as November draws to a close.
The recent rebound in Bitcoin prices has positively impacted the broader altcoin market, significantly led by Ethereum (ETH). This trend is evidenced by the declining Bitcoin dominance, as crypto investments are increasingly rotating into altcoins.
Factors Driving the Bitcoin Price Surge
Potential Appointment of Paul Atkins as US SEC Chair
The resignation of the current US SEC chair, Gary Gensler, has sparked intense speculation and interest in his successor. According to sources, Paul Atkins, a former SEC commissioner with a notable understanding of cryptocurrencies, is a leading candidate. This potential appointment, as reported by Fox Business and Eleanor Terrett, has fueled optimism within the crypto community, contributing to Bitcoin’s recent price surge.
Positive Cash Inflow to US Spot Bitcoin ETFs
After experiencing conservative cash outflows, US spot Bitcoin ETFs saw a net cash inflow on Wednesday. Led by Fidelity’s FBTC and Bitwise BITB, these ETFs registered a significant inflow totaling $103 million. As of November 27, the total value of Bitcoins held by US spot BTC ETFs has surpassed $104 billion, with BlackRock’s IBIT leading the pack. This influx of funds is indicative of growing investor confidence and interest, further boosting Bitcoin’s price.
Long Squeeze Amid Institutional FOMO
Market data reveals a substantial liquidation in Bitcoin’s leveraged market, with $77 million liquidated recently. Notably, $56 million of this involved short traders. The shift towards a long squeeze scenario has increased Bitcoin’s price in the past 24 hours. Institutional investment has played a significant role in this trend. Companies like MicroStrategy Inc. have strategically acquired over $10 billion worth of Bitcoins, setting a precedent that has influenced other firms such as Metaplanet, Hut 8, and Rumble to follow suit.
The convergence of these factors has created a favorable environment for Bitcoin’s price appreciation. As we move forward, it remains to be seen if Bitcoin will maintain its upward trajectory and reach the coveted $100,000 threshold. The evolving regulatory landscape, coupled with institutional interest, will undoubtedly play a crucial role in shaping Bitcoin’s future.
