Bitcoin Price Boosted by Potential ETF Approval, Major Institutional Inflows, and Squeezed Supply

According to Cointelegraph: Bitcoin's price is rallying, rising from a Nov. 14 correction of $34,500 to an intra-day high of $37,650. The uptick coincides with the lowest ever available liquid supply and growing allocations to Bitcoin by institutional investors. The price boost is driving strong market sentiment, with the Crypto Fear and Greed index leaning significantly in the "Greed" direction. This positive sentiment can be attributed to a few key factors: Bitcoin price. Source: TradingView 1. Anticipation of Spot BTC ETF Approval: The possibility of the Securities and Exchange Commission (SEC) approving the pending BTC spot ETFs, with the first approval window having opened on Nov. 9, is fueling optimism. While the SEC has yet to green-light any of the spot BTC ETF applications - filed by prominent market players like BlackRock, Fidelity, ARK Invest, and 21Shares – the approval period extends until January 10, 2023. If an ETF materializes, expert estimations predict a $600 billion to $1 trillion boost in Bitcoin's market capitalization. Fear and Greed Index. Source: Newhedge 2. Increased Institutional Investments: CoinShares indicates that institutional investments in cryptocurrency have exceeded $1 billion over the past year, with over $240 million directed towards Bitcoin alone. The report also reveals that institutional investors contribute to roughly 19.8% of all Bitcoin trading volume. Crypto asset institutional investor inflow. Source: CoinShares 3. Diminishing Liquid Bitcoin Supply: With growing Bitcoin investments from institutions, the liquid supply of BTC is dwindling. Bitcoin balances at exchanges have been in constant decline, falling by over 200,000 since the yearly peak on May 3, 2023. This decline in balances coupled with exchange and short-term holder supply reaching historically low levels is perceived as a bullish signal by the market. BTC balance on exchanges. Source: Glassnode The confluence of these factors, namely the potential approval of a Bitcoin spot ETF, an influx of institutional investments, and tightening supply, is driving today's surge in Bitcoin prices.