Why Is Bitcoin's Price Surging?

In late October 2023, bitcoin reached $35,000, its highest level in more than a year. The article attributes the rise mainly to institutional players such as BlackRock, whose June 2023 application for a spot bitcoin ETF had raised expectations of SEC approval, rather than to retail investors. Charles Yu of Galaxy Digital estimated that a spot ETF could give the $48.3 trillion US wealth management industry access to bitcoin and lift its price by almost 75% within a year.

The article also points to the halving expected in April 2024, historically followed by bullish periods of 12 to 18 months, which fell in the same year as the US presidential election. A former BlackRock managing director had predicted approval within months, and a federal appeals court had ruled in Grayscale’s favour. The article suggested that limited exchange supply could create a supply crunch, while warning of volatility along the way.