What's Driving the Surge in Bitcoin's Market Price?

Since the cryptocurrency community views the CZ settlement agreement with the DOJ as a positive development, the price of Bitcoin has increased overnight.

Source:cryptoast.fr

After correcting to $35,651 on November 21, the value of Bitcoin has risen today, reaching a high for the day of $37,431. The surge follows a 3% increase in the value of Bitcoin following investors' processed exchange agreement with the US Department of Justice (DOJ). The deal has rekindled investor excitement about the prospect of a spot BTC exchange-traded fund (ETF), which they believe would result in substantial inflows into the cryptocurrency and drive up prices throughout the market. Investigate the causes behind the current increase in the price of Bitcoin.

Possible Acceptance of a Spot Bitcoin ETF Improves Market Mood

The price of Bitcoin is rising amid several macroeconomic challenges, such as a 124% rise so far this year and rising volatility. Considering that Arthur Hayes managed to reach a similar agreement, several Bitcoin analysts think the Exchange-DOJ agreement is encouraging for the adoption of a spot Bitcoin ETF.

The Bitcoin Fear & Greed Index continued to indicate persistently high investor sentiment compared to last month, staying in the Greed zone. The SEC has so far declined to grant authorization for a spot Bitcoin ETF despite many applications, namely from BlackRock, Fidelity, ARK Invest, and 21Shares, following an avalanche of spot Bitcoin ETF modifications in mid-October. The SEC's following deadline is January 10th, following a postponement in permits on a deadline of November 17th. Officials from Grayscale and BlackRock convened with the SEC on November 20 to talk about the authorization of a Bitcoin ETF on the spot. A stamp of approval may lead to an increase in consumer demand of $600 billion as Forbes reported. Researchers at CryptoQuant predict that the introduction of an ETF will raise the worldwide market value of Bitcoin by $1 trillion.

After the debut of a spot BTC ETF, Galaxy Digital forecasts a 74% pricing gain in the first year. Financial institutions are currently allocating money to Bitcoin and other cryptocurrencies, even if some investors could be waiting for more liquidity from authorized ETFs. In the last year, financial institutions have reportedly invested over $1 billion in cryptocurrency funds, as reported by CoinShares. More than $240 million of the total $1 billion has gone directly toward Bitcoin. Just Bitcoin attracted $155 million in corporate inflows in the last week.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.