Bitcoin is trading at just under USD 66,000 and is only around 1.7 percentage points away from its all-time high. Is it really getting started now?
On the night of Monday, November 8th, the crypto reserve currency Bitcoin (BTC) made up a good piece of ground and rose to 66,000 US dollars (USD) within a short period of time. On a daily basis, the cryptocurrency has gained six percent – the all-time high within reach. According to data from Coingecko the currently applicable all-time high is USD 67,276. At the time of writing, only 1.7 percent are missing by then.
The reasons for the outbreak cannot be clearly determined on an ad-hoc basis. It is noticeable, however, that Barry Silbert, boss of Grayscale and thus manager of the largest Bitcoin fund ever, promised big news shortly before the outbreak. Silbert had already announced in advance that he wanted to convert the Grayscale Bitcoin Trust into an ETF and thus make it tradable on the stock exchange. Since this ETF would be a so-called spot ETF in contrast to the index funds that have already been launched, high price expectations are linked to the approval.
However, it is unlikely that Silbert is referring to the possible start of the Grayscale ETF with his tweet. After all, the application for a conversion of the Bitcoin Trust was only received by the relevant stock exchange regulator, the SEC, on October 19 of this year. And if you can rely on one constant in the crypto space, then it is the slowness of this official body.
Despite the silver teaser, the Bitcoin outbreak is likely to be primarily due to the bullish momentum on the crypto market. Because if you take a look at the data that provides the transparency of the Bitcoin blockchain, you realize that the bull market is only just really picking up speed.
Hash rate grows
For example, the hash rate, i.e. the accumulated computing power in the BTC network, has increased by around 12 percent within 24 hours. The miners are trying to tap the bullish momentum in the market and are increasingly mining for coins – and thus also contributing to the security of the network.
The reserves on the Bitcoin exchanges also promise bullish, as they are falling sharply. Despite the all-time high of USD 67,000, Holders are not liquidating their holdings, but are currently stocking them up. In other words: The demand for coins currently exceeds the supply.
As can be seen in the graphic, the accumulated supply on the Bitcoin exchanges is currently only 2.3 million BTC. In mid-July it was 2.5 million Bitcoin.