In a remarkable turn of events, Bitcoin (BTC) experienced a significant price surge, climbing over 4 percent within a 24-hour period. This upward momentum saw BTC momentarily touching a high of approximately $97,360, though it later settled at $95,740 during the early Asian trading session on Thursday. The cryptocurrency community is abuzz with optimism, speculating if Bitcoin can rally to the coveted $100k mark before the month’s end.
This rebound in Bitcoin’s value has had a ripple effect across the altcoin market, notably led by Ethereum (ETH). The shift in focus towards altcoins is evident in the declining Bitcoin dominance, as investors look to diversify their portfolios amidst the crypto cash rotation.
Factors that Influenced Bitcoin Pump Today
Paul Atkins’ Potential Appointment as US SEC Chair
Amidst the recent developments, the potential appointment of Paul Atkins as the new US SEC Chair has stirred excitement. Following Gary Gensler’s resignation announcement, the transition team is reportedly considering Atkins, a former commissioner with a strong understanding of cryptocurrency, as a leading candidate. This news has injected a sense of optimism into the market, as regulatory clarity could pave the way for more institutional investments.
Positive Cash Inflow to US Spot BTC ETFs
The US spot Bitcoin ETFs witnessed a positive shift, registering a net cash inflow after two days of conservative outflows. On Wednesday, November 27, ETFs such as Fidelity’s FBTC and Bitwise BITB saw cash inflows amounting to $103 million. This influx boosts the total value of Bitcoins held by US spot BTC ETFs to over $104 billion, with BlackRock’s IBIT leading the charge. This trend underscores growing investor confidence and interest in Bitcoin-backed financial instruments.
Long Squeeze amid Institutional FOMO
The market dynamics further intensified with a notable long squeeze, driven largely by institutional FOMO (Fear of Missing Out). Recent data indicates that $77 million worth of Bitcoin was liquidated from the leveraged market, with a substantial $56 million involving short traders. This shift follows significant liquidations of long positions, amplifying the potential for a long squeeze that contributed to Bitcoin’s price surge. High-profile investors and companies, such as MicroStrategy Inc., have played a pivotal role in this trend, having purchased over $10 billion in Bitcoin recently. Their actions have prompted other entities, including Metaplanet, Hut 8, and Rumble, to follow suit.
As the end of November approaches, all eyes remain on Bitcoin’s performance. Will it reach the $100k milestone? The interplay of regulatory developments, ETF inflows, and institutional participation will be crucial in shaping Bitcoin’s trajectory in the coming days.
