In today’s market, the iconic digital currency, Bitcoin stands tall with a 3% rise sending its price past the $27,300 mark. This spike in value reflects a 4% gain for the month of September, a glimmer of bullishness in the market. One key element linked to this price surge is the lowering availability of Bitcoin on cryptocurrency exchanges.
The supply of Bitcoin on exchanges, specifically below the peak of September 4th, is seen as a harbinger of change, given the insight it offers into traders’ sentiment. When traders intend to hold their Bitcoin in long-term self-custody, it likely signals their confidence in the asset’s potential. The continuous draining of Bitcoin from exchanges intensifies the impact of liquidations on price, particularly with the liquidation of over $21.5 million BTC shorts in the past day.
Though it’s worth noting, there remains a populous contingent that is betting against Bitcoin. More than 50% of the futures market holds a short position on Bitcoin, offering an opportunity for what’s known as a short-squeeze – this could catalyse further price surges.
Institutional interest in Bitcoin, meanwhile, is generating further positivity for Bitcoin holders. Heading this charge is the US Court of Appeals Judge Neomi Rao siding with Grayscale Bitcoin Trust against the U.S. Securities and Exchange Commission (SEC). Despite the SEC’s characteristic defiance, larger corporations are showing increasing interest in Bitcoin, including financial behemoths like Fidelity Investments and BlackRock.
Both companies have had Bitcoin spot ETF approvals delayed; however, the $1.5 trillion asset manager, Franklin Templeton, joined the fray with its filing for a spot Bitcoin ETF. Franklin Templeton proposes using Coinbase for custody of the BTC in the trust. Despite numerous applicants, the SEC remains wary of approving a spot Bitcoin ETF.
On the other side of the coin, long-term Bitcoin holders are holding firm amid tough macro headwinds. Despite the market turbulence, these stalwarts believe Bitcoin’s stability is testament to their commitment. As of September 28, the amount of Bitcoin held by longer-term investors reached a record high, accounting for 76.1% of the total outstanding BTC supply.
Despite the flicker of optimism, Bitcoin’s Fear & Greed Index, a metric that quantifies market sentiment, indicates that the market remains predominantly fearful. This could potentially put a damper on Bitcoin’s current uptrend and inject uncertainty into the digital asset’s future journey.
In conclusion, though the price hikes are promising, have your risk shields up. As the future of cryptocurrency in general and Bitcoin, in particular, is truly versatile and unpredictable.
Source: Cointelegraph
