In a sudden move, the pioneer cryptocurrency price surged back above $60,000 on April 10 for the first time since mid-March. Bitcoin went on to rampage past $61,000 before retreating to approximately $60,607.99 at the time of publication.
The world’s second-biggest cryptocurrency, ethereum, also surged to a fresh all-time high near $2,200.
Bitcoin’s upsurge was accompanied by a stream of liquidations. According to crypto strategist Lex Moskovski, $163,745,606 BTC shorts were liquidated in the span of an hour. “While Bitcoin is grinding up to another ATH. Being a bear is expensive,” he summarized.
Why Bitcoin Is Absolutely Rallying Today
The precise catalyst behind this sharp rise, meanwhile, is less clear-cut. However, it comes as the United States Securities and Exchange Commission (SEC) announces it will begin reviewing WisdomTree’s Bitcoin ETF application. The firm filed its application in March 2021.
Additionally, Krypton Investment Advisors has refiled an application with the SEC for a bitcoin ETF, a little over a year since it first filed in October 2019. Notably, there are currently at least 8 ETF applications pending approval, and bitcoin enthusiasts are optimistic that the first ETF in the U.S. could finally get the green light this year.
Secondly, it comes just days before San Francisco-based crypto exchange Coinbase goes public. The move is highly-awaited by the crypto community with observers noting that it is an indication of the evolution and maturity of the crypto industry. With Coinbase’s listing on Nasdaq, Wall Street investors will have one of the most accessible bets on the burgeoning asset class.
Moreover, institutional investors have been coming in droves — which could have bolstered the bitcoin bulls. Just yesterday, Third Point, owned by billionaire investor Daniel Loeb, revealed that it is holding bitcoin with Coinbase, Morgan Creek’s Anthony Pompliano pointed out. According to Coinbase’s official documents, all of the five funds of Third Point hold the top crypto.
Besides the crypto market’s excitable state, another likely reason for the rally is that miners are now accumulating their mined coins for the first time since December. On-chain data firm Glassnode noted a few days ago that the “Miner net position change” indicator is flashing green, suggesting that miners are HODLing their newly minted coins.
Bitcoin Is Finishing The First Of A Double Top
Comparing the current bitcoin bull rally to other cycles in the past, statistician Willy Woo observed that the cryptocurrency is currently concluding its “double top” structure.
Woo concluded that once this level is cleared, there’s a high possibility we will never see a sub-$1 trillion market cap again, adding: “The bottom of the next bear market historically has been higher at this juncture.”