Bitcoin (BTC), at the start of European trading hours, has passed the important milestone of $71,000. This is a significant increase over its previous high, which was set only last week. This increase can be attributed in part to factors that boosted investor’s confidence and triggered an unprecedented wave of buying across the cryptocurrency markets. This article will examine the four major factors behind this unprecedented rally.
The London Stock Exchange embraces Bitcoin and Ethereum ETNs
Bloomberg reported just before the price spike that the London Stock Exchange would be accepting applications for Bitcoin and Ethereum Exchange Traded Notes (ETNs). This will happen in the second half of the year.
*LSE TO ACCEPT APPLICATIONS FOR BITCOIN, ETHEREUM ETN ADMISSION: BBG
— Tree News (@News_Of_Alpha) March 11, 2024
The exact date is not yet confirmed, but this move represents a major step forward in the mainstream. financial Markets’ acceptance of cryptocurrency. The inclusion of ETNs for crypto assets on one the oldest stock markets in the world demonstrates the growing interest of institutional investors in digital assets.
Second Impact of a Short Squeeze
Bitcoin Munger, a traditional finance portfolio manager (@bitcoinmunger), predicted a short squeeze that would propel Bitcoin prices to new highs. “We likely start the week off with a bang, courtesy of the short sellers looking to get squeezed at $70k. New highs are incoming,” Munger predicted.
The short sellers will likely kick off the week by squeezing the $70k mark.
We are about to reach new heights. Tick, tock! #bitcoin pic.twitter.com/OFiNmlmc9Y
— Bitcoin Munger (@bitcoinmunger) March 10, 2024
Coinglass reported that the rise of Bitcoin to $71,000 resulted in a liquidation of $23.5 million worth of short positions. data.
The Role of Tether in Capital Influx
The weekend and the previous week saw a new influx of money. Leading stablecoin Tether (USDT) Lookonchain, a firm that provides analysis of on-chain transactions, reported that: “The Tether Treasury minted 2 billion USDT again [yesterday]! And 5 billion USDT has been minted on Tron and Ethereum in just one week!” Lookonchain is a company that provides on-chain analysis.
A notable transaction was a whale, or an institution, receiving 261.6 millions USDT from Tether Treasury. They deposited it on the Binance exchange. This suggests that there has been significant preparation for major trading operations.
After #TetherTreasury Coined 2B $USDTA whale/institution has received 261.6M $USDT You can also find out more about us on our website. #TetherTreasury Deposit it in #Binance.https://t.co/ohBcxqbrzThttps://t.co/Cxs2WfFPCn pic.twitter.com/fvL7Cz5Tvv
— Lookonchain (@lookonchain) March 11, 2024
Fourth Surging Demand for Bitcoin ETFs
Enthusiasm surrounding Bitcoin Exchange-Traded Funds (ETFs) In the United States, there has been an extraordinary increase. “Bitcoin ETFs have attracted more than $7.5 billion in net new assets since launching in the US on January 11, making many of them among the most successful ETF launches of all time,” noted Matt Hougan is the CIO of Bitwise and he sent a memo out to investment professionals.
Hougan in more detail “At Bitwise, we’ve engaged with registered investment advisors (RIAs), family offices, and venture capital funds among our current buyers. Looking forward, we’re in discussions with major wirehouses, institutional consultants, and large corporations, which represent trillions of dollars in assets.”
This insight highlights a growing confidence Bitcoin ETFs are a popular investment option. They expect significant capital flows from these entities to begin in the second quarter 2024. This indicates a positive outlook for Bitcoin. He said “Based on current trends, I’d suspect we’ll see our first significant flows from [major wirehouses, institutional consultants, and large corporations] in Q2 2024.”
BTC was trading at $71,296 as of the time of publication.
Featured image created with DALL·E, chart from TradingView.com
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