In a fairly sudden move, the price of Bitcoin returned to above $ 10 on April 60.000 for the first time since mid-March. Bitcoin continued to rise above $ 61.000, before retreating to around $ 60.600,00 at the time of publication.
The second largest cryptocurrency in the world, Ethereum, has also climbed to a new all-time high near $ 2.200.
The surge was also accompanied by the usual flow of liquidations. According to strategist Lex Moskovski, the $ 163,745,606 short BTC positions were liquidated within an hour. “While Bitcoin is grinding up to another ATH. Being a bear is expensive, ”he summed up.
Why Bitcoin is growing so suddenly
The catalyst behind this sharp rise, meanwhile, is less clear. However, it comes when the United States Securities and Exchange Commission (SEC) announces that it will begin examining WisdomTree's Bitcoin ETF application. The company applied in March 2021.
Additionally, Krypton Investment Advisors re-filed an application with the SEC for a bitcoin ETF, just over a year since it was first submitted in October 2019. Specifically, there are currently at least 8 ETF applications in pending approval. Therefore, bitcoin enthusiasts are optimistic that the first ETF in the US could finally get the green light this year.
Second, it comes just days before Coinbase, the San Francisco-based cryptocurrency exchange, goes public. The move is highly anticipated by the crypto community. Furthermore, many observers note that it is an indication of the evolution and maturity of the crypto industry. With the listing of Coinbase on the Nasdaq (NASDAQ shares), Wall Street investors will have one of the most accessible bets on the burgeoning asset class.
Additionally, institutional investors came in droves, which could have supported the bitcoin bulls. Just yesterday, Third Point, owned by billionaire investor Daniel Loeb, revealed it owns bitcoin with Coinbase, Morgan Creek's Anthony Pompliano pointed out. According to official Coinbase documents, all five of Third Point's funds own the first cryptocurrency.
In addition to the state of excitability of the cryptocurrency market, another likely reason for the rally is that miners are now amassing their first mined coins since December. On-chain data firm Glassnode noted a few days ago that the “Miner's Net Position Change” indicator is flashing green, suggesting that miners are HODLing (keeping) the newly minted coins.
Bitcoin is finishing the first of a Double Top
Comparing bitcoin's current rise to other cycles in the past, statistics expert Willy Woo noted that the cryptocurrency is currently finishing its “double top” structure.
Woo concluded that once this level is cleared, there is a high possibility that we will never again see a market cap of less than $ 1 trillion, adding that: “The bottom of the next bear market has historically been higher. at this juncture ".