The price of Bitcoin (BTC) rose more than 4% in the last day after dipping below $92k earlier this week. It temporarily hit a high of roughly $97,360 before retreating to $95,740 on Thursday during the early Asian session. Before the end of November, the flagship currency has made an effort to reclaim its bullish momentum and rise towards $100k.
The bulk of the altcoin market, driven by Ethereum (ETH), has been swept along with the ongoing Bitcoin price recovery during the past day. As evidenced by Bitcoin’s recent decline in dominance, the crypto cash rotation mostly favored altcoins.
Reasons For the Recent BTC Rally
Long Squeeze and Increasing Institutional Purchase
The most recent market data indicates that $56 million of the $77 million liquidated from the leveraged market for Bitcoin comprised short traders. The likelihood of a long squeeze increased dramatically following two days of noteworthy long trader liquidation, which caused the price of Bitcoin to rise throughout the last day.
The price of Bitcoin has greatly profited from the continuous increase in demand from institutional investors, as previously noted. MicroStrategy Inc., for example, has bought over $10 billion worth of Bitcoins in the last two weeks, pushing other businesses like Metaplanet, Hut 8, and Rumble to follow suit.
Paul Atkins for SEC Chair
The hunt for the next top commissioner has accelerated after current US SEC chair Gary Gensler announced his resignation from the SEC. Fox reporter Eleanor Terret claims that Paul Atkins, a former commissioner with extensive knowledge of cryptocurrency, is being seriously considered by Trump’s transition team to be the next chairman of the US SEC.
BTC ETF Records Positive Inflow
The US spot Bitcoin ETFs had a net cash inflow on Wednesday following two days of cautious cash withdrawals. On Wednesday, November 27, the US spot BTC ETFs had a net cash inflow of $103 million, driven by Bitwise BITB and Fidelity’s FBTC. As a result, the US spot BTC ETFs, which are topped by BlackRock’s IBIT, currently contain Bitcoins valued at over $104 billion.
Conclusion
The recent Bitcoin rally demonstrates the cryptocurrency’s resilience and its ability to attract significant institutional interest, even amidst market volatility. The $56 million short squeeze highlights how market dynamics can drive swift price recoveries, while institutional purchases, like those from MicroStrategy, emphasize growing confidence in Bitcoin as a store of value.
Positive inflows into Bitcoin ETFs signal increasing mainstream adoption and a potential shift in investor sentiment. Additionally, the potential appointment of Paul Atkins as SEC Chair could usher in a more crypto-friendly regulatory environment, boosting market optimism.
However, the volatility and speculative nature of crypto investments remain critical considerations.
Anthony Pedro
Anthony Pedro is a seasoned crypto writer with a deep passion for blockchain technology and digital currencies. With over 4 years of experience in the cryptocurrency space, Anthony has become a trusted voice, offering insightful analysis and commentary on the latest trends, innovations, and market movements. When not writing, he is actively engaged in the crypto community, attending conferences, advising blockchain startups, and experimenting with new projects.