Bitcoin Skyrockets to $36,800: Factors Driving the Remarkable Surge Unveiled

• Bitcoin’s price surged over 4% within 24 hours, reaching $36,800, driven by key factors like ETF approval speculation, increased whale activities, a significant short squeeze, and shifting Bitcoin supply dynamics.
• Speculation surrounding the potential approval of a spot Bitcoin ETF by the SEC, increased whale activity, short squeeze liquidations, and a decrease in Bitcoin supply on exchanges have contributed to the recent Bitcoin price surge.

Recently, Bitcoin’s price soared above $36,800, marking a notable increase of over 4% within a 24-hour. This surge was steered by various key factors, each playing a pivotal role in propelling the cryptocurrency’s value.

Firstly, there’s fervent speculation concerning the potential approval of a spot Bitcoin Exchange-Traded Fund (ETF) by the US Securities and Exchange Commission (SEC). This speculation gained traction following a Bloomberg note by James Seyffart, suggesting a unique opportunity within the next eight days for the approval of all 12 spot ETF applications.

Unraveling ETF Speculation’s Impact on Bitcoin’s Rally

Additionally, increased activities by Bitcoin whales have been observed, hinting at market optimism. Notably, significant purchases and liquidity shifts in the market indicate a positive outlook, influencing market sentiment and activity.

Subsequently, a notable short squeeze took place, liquidating approximately $51 million in BTC short positions. This event, alongside the dwindling supply of Bitcoin on exchanges, has contributed significantly to the recent surge in Bitcoin’s value.

The decreasing Bitcoin supply on exchanges, reaching a six-year low, indicates a strong trend of reduced inflows. Coupled with on-chain data highlighting a substantial portion of BTC held by long-term holders, these supply dynamics are essential in understanding the current market sentiment.

As Bitcoin trades at $36,585, these multifaceted factors underscore the complex yet impactful elements driving the cryptocurrency’s recent surge.