Here’s what happened in crypto today
Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
The price of Bitcoin
continued to rise on Meanwhile, BTC hit $44,000 on Dec. 5 — a 19 month Dec. 5 and a BlackRock filing showed it received $100,000 in seed capital from an unnamed investor for its spot Bitcoin ETF.
CME’s Bitcoin futures open interest nears all-time high
Bitcoin futures open interest has reached $5.2 billion on the global derivatives giant Chicago Mercantile Exchange (CME), $200 million shy of its late October 2021 all-time high.
CME’s Bitcoin futures open interest grew from $3.63 billion to $5.20 billion over the last 30 days, Coinglass data shows
The surge has run parallel to Bitcoin’s 26% gain over the same time. Bitcoin is currently trading at just under $44,000.
From Oct. 1 to 21, 2021, open interest in CME’s Bitcoin futures surged from $1.46 billion to $5.45 billion which coincided with a drastic Bitcoin price jump, which went from $45,000 to $66,000.
IG Australia analyst Tony Sycamore told Cointelegraph the uptick singals a renewed interest in Bitcoin, but it doesn’t explain how CME traders are positioned.
Until CME’s report on Tuesday, Dec. 12, Sycamore said investors won’t be able to see exactly how the players at CME are positioned. It’s Nov. 28 report showed its “big players” were sitting net short.
“What we can’t see right now is whether the big players have gone from a net short to a net long, Sycamore said.
Bitcoin price hits 19-month high
Bitcoin’s price eclipsed $44,000 on Dec. 5, fueled by optimism that the SEC will approve a spot ETF in the same year of BTC’s next quadrennial halving.
The largest cryptocurrency reached a session high of $44,011, according to data from Cointelegraph Markets Pro and TradingView. Bitcoin’s price is up roughly 15% over the past week.
Pretty much the final boss for #BTC in this range for the RSI
If we get a God Candle like I said originally or just continue to grind upward as we have been; it would likely clear this on the RSI and the Price, which would open the door for much higher prices after this month… https://t.co/GYlQO1BJA8 pic.twitter.com/0yWh5q17kA
— Matthew Hyland (@MatthewHyland_) December 1, 2023
Adding to the bullish optimism is the expectation that the U.S. Federal Reserve will end its rate-hike campaign amid slowing inflation and a weakening labor market.
“Optimism around the Dec #FED rate decision and Jan #ETF decision can push things higher and fuel euphoria, so be prepared for what comes after that,” said Material Indicators, a trading source active on X (formerly Twitter).
The Fed’s final policy meeting of 2023 will take place Dec. 12 to 13, and it’s almost certain that policymakers will leave rates unchanged, according to CME Group’s FedWatch Tool.
BlackRock received $100,000 in seed funds for Bitcoin ETF — SEC filing
The world’s largest asset manager, BlackRock, received $100,000 in seed funding from an unknown investor for its spot Bitcoin ETF in October 2023, a recent filing showed.
The SEC filing revealed that the investor agreed to purchase 4,000 shares for $100,000 on Oct. 27, 2023, at $25.00 per share. The deal would see the investor “acting as a statutory underwriter with respect to the Seed Creation Baskets.”
This is so interesting in the nerdiest way.
— James Seyffart (@JSeyff) December 5, 2023
The latest filing by BlackRock also revealed certain details on the asset manager’s plans to pay the sponsor’s fee, where it plans to borrow Bitcoin
or cash as trade credit from the trade credit lender on a short-term basis. BlackRock can “charge their fees” via a loan instead of having to sell BTC (the ETF asset). That way, they “don’t impact BTC price that much.”
Unraveling the Surge: Factors Driving Today’s Bitcoin Price Rally
In the ever-evolving realm of cryptocurrency, the current surge in Bitcoin prices has ignited a fervor of interest and speculation. Today’s unexpected uptick saw Bitcoin (BTC) climb over 4.2%, reaching an impressive $43,671 in the latest trading session. To comprehend the driving forces behind this surge, a multifaceted analysis is imperative.
A pivotal force propelling Bitcoin’s price upwards today is the escalating interest from institutional investors. Traditionally wary of the cryptocurrency market, institutions are now recognizing Bitcoin’s potential as a robust and valuable asset. The gradual acceptance of Bitcoin within institutional portfolios injects a new level of confidence, influencing market dynamics and contributing to the current price surge.
Anticipation of Bitcoin Spot ETF Approval:
A major catalyst for the surge lies in the speculation surrounding the approval of a Bitcoin spot Exchange-Traded Fund (ETF). Market participants are eagerly awaiting regulatory green lights in 2024, envisioning a pivotal moment for the cryptocurrency space. The potential approval of a Bitcoin ETF is perceived as a significant step toward mainstream acceptance, sparking optimism and driving demand for Bitcoin.
Overall Positive Market Sentiment:
Beyond specific events, the prevailing positive sentiment across the cryptocurrency market plays a pivotal role in Bitcoin’s surge. Investors are buoyed by an optimistic outlook regarding the broader developments within the crypto space. Macro-economic conditions, coupled with an increasing belief in the transformative potential of blockchain technology, fuel a sense of enthusiasm that contributes to the overall bullish sentiment.
Ethereum’s Ripple Effect:
While Bitcoin stands in the spotlight, it is essential to acknowledge the broader crypto market dynamics. Ethereum, the second-largest cryptocurrency, experienced a 1.6% surge to $2,270 during the same period. The correlation between Bitcoin and other major cryptocurrencies suggests a collective market movement. Ethereum’s positive performance acts as a reinforcing factor, strengthening confidence in the broader crypto market and bolstering Bitcoin’s upward trajectory.
Influx of Capital and Growing Market Capitalization:
A notable factor behind Bitcoin’s surge today is the influx of capital into the cryptocurrency market. Both retail and institutional investors are displaying an increased interest, leading to heightened liquidity and an expansion of market capitalization. This inflow of capital is not exclusive to Bitcoin but is permeating throughout the cryptocurrency market, with Bitcoin, as the pioneer, leading the surge.
In summary, today’s surge in Bitcoin prices is the outcome of a convergence of diverse factors. Institutional adoption, anticipation of a Bitcoin spot ETF, positive market sentiment, the ripple effect from Ethereum, and an influx of capital collectively contribute to the remarkable rally. As the cryptocurrency landscape continues to evolve, stakeholders and enthusiasts will closely monitor these variables to decipher the trajectory of Bitcoin’s future prices. The interplay of these factors underscores the dynamic nature of the cryptocurrency market, where a myriad of influences shape its trajectory.