Several pivotal developments have contributed to this impressive price spike, leaving investors and enthusiasts buzzing with excitement.
In this article, you will explore these catalysts and their implications for the increase of the price of BTC in the last 24 hours.
1. BlackRock’s Spot ETF on Depository Trust & Clearing Corporation (NASDAQ)
One of the most noteworthy events that sent Bitcoin on an upward trajectory was the listing of BlackRock’s spot ETF on the DTCC. Which trades on the NASDAQ stock exchange. So, BlackRock is known for its growing interest in cryptocurrencies. The ETF’s listing on a major exchange such as NASDAQ signals. It is a significant step toward institutional acceptance of BTC.
JUST IN: @EricBalchunas reports BlackRock's spot @Bitcoin ETF has been listed on the Depository Trust & Clearing Corporation – which handles NASDAQ trades. $IBTC will be the ticker symbol 👀 pic.twitter.com/juXos0mBHv
— Bitcoin News (@BitcoinNewsCom) October 23, 2023
The introduction of a Bitcoin ETF by BlackRock opens up new investment opportunities for traditional investors. They may have been hesitant to enter the cryptocurrency space directly. ETFs allow investors to gain exposure to Bitcoin without owning the digital asset itself. This move has provided a sense of legitimacy and could potentially attract significant institutional capital. Further bolstering Bitcoin’s price.
2. US Court of Appeals Mandates SEC to Re-review Grayscale’s Spot Bitcoin
The US Court of Appeals’ decision to mandate the SEC to re-review Grayscale’s spot Bitcoin. Grayscale is a digital asset management company known for its Bitcoin Trust. Offering a way for investors to gain exposure to Bitcoin through traditional financial markets.
JUST IN: 🇺🇸 US Court of Appeals mandates SEC to re-review Grayscale's spot #Bitcoin ETF 👀 pic.twitter.com/V2n3Nf9450
— Simply Bitcoin (@SimplyBitcoinTV) October 23, 2023
The SEC’s review of Grayscale’s spot Bitcoin could have far-reaching implications for the cryptocurrency market. If approved, Grayscale’s Bitcoin Trust could attain the status of an ETF. Making it more accessible to a broader range of investors.
This decision could further legitimize Bitcoin in the eyes of the US regulatory authorities. Which would boost investor confidence and likely lead to more significant investment inflows.
3. Confirmation of BlackRock Stacking Bitcoin
Rumors had been circulating for some time about BlackRock’s interest in Bitcoin. However, when the news broke that BlackRock was actively stacking Bitcoin, it sent shockwaves throughout the crypto community. This confirmation marks a milestone moment in the adoption of cryptocurrencies by large institutional players.
🚀BREAKING: Confirmation Blackrock📈Stacking Bitcoin!🤯 https://t.co/GZhfkmOAtB
— InvestAnswers (@invest_answers) October 23, 2023
BlackRock’s entry into the market is a strong signal to other institutional investors, encouraging them to explore Bitcoin as a store of value and a hedge against inflation. The financial giant’s decision to allocate funds to Bitcoin indicates a growing belief in the long-term potential of the cryptocurrency, driving further demand and contributing to its price surge.
4. Decrease in Bitcoin Supply on Exchanges
Another crucial factor contributing to the 12% surge in Bitcoin’s price is the significant drop in the available supply on exchanges. During the peak of the previous bull run, approximately 2.8 million BTCs were held on exchanges. However, the number has now decreased to around 2 million Bitcoin.
#Bitcoin supply on exchanges has dropped from 2.8M near the top of the last bull run to ~2M BTC now
When an ETF is approved, how high will price go due to the low amount of supply on the market? pic.twitter.com/bNxAJpGPB8
— Velvet.Capital (@Velvet_Capital) October 21, 2023
This reduction in supply on exchanges indicates a strong HODLing sentiment among Bitcoin holders. Many investors are choosing to hold their Bitcoin rather than actively trade or sell, anticipating long-term gains. As the available supply diminishes, the laws of supply and demand come into play. This will lead to increased scarcity and, consequently, higher prices.
Implications and Future Outlook
The confluence of these events has had a profound impact on Bitcoin’s price in the last 24 hours. The rally showcases the growing influence of institutional investors in the cryptocurrency market. It underscores Bitcoin’s evolution from a fringe digital asset to a recognized store of value and investment opportunity.
The listing of BlackRock’s spot ETF on the NASDAQ, the SEC’s re-review of Grayscale’s spot BTC ETF, and the confirmation of BlackRock’s investment in Bitcoin signify a monumental shift in the landscape of cryptocurrency adoption. Institutional heavyweights are now embracing BTC as part of their investment portfolios, further cementing its status as a credible asset class.
Conclusion
The decrease in Bitcoin’s supply on exchanges reflects a long-term commitment to the digital currency. Hinting at a more mature investor base. With fewer bitcoins available for trading, the potential for price volatility increases as investors vie for this limited resource.
