Earlier this week, Wednesday, Oct.6, Bitcoin rose to $ 55.000, hitting a four-month high amid strong build-up by whales. However, the price of BTC has since dropped to around $ 54.000 according to the current one quotation.
Analysts expect the BTC price to hit $ 100.000 this year. Will Bitcoin Replicate Q2017 XNUMX Price Rally Once Again? All hopes are on the possibility of Bitcoin ETF approval before the end of this month. Strong market rumors suggest that the US SEC may approve America's first Bitcoin ETF just at the end of this month.
A very similar case occurred in 2017! On October 31, the Chicago Mercantile Exchange (CME) group announced its Bitcoin futures to the market. The CME Bitcoin Futures launched on December 18, 2017, caused the price of BTC to hit an all-time high.
Calling it a “buy the rumors, sell the news” moment, crypto analysts Lark Davis note that he wouldn't be shocked to see a similar situation occurring if the Bitcoin ETF gets approval. Not to forget, institutional activity in Bitcoin is much higher than it was in 2017.
JPMorgan: Institutions prefer Bitcoin to gold
In a note from JPMorgan accessible by Markets Insider, BTC's recent price hike in October was mainly due to institutional participation. He said the appetite of institutional investors has grown after the SEC and Fed assured them they won't ban digital assets.
The banking giant said the previous trend of money going into Bitcoin and out of gold has resurfaced once again. He added: "It appears that institutional investors are returning to buying Bitcoin, perhaps seeing it as a better hedge against inflation than gold." The three main reasons behind Bitcoin's recent price rally are:
- "Recent assurances from US policy makers that there is no intention of following China's steps towards banning the use or mining of cryptocurrencies."
- "The recent rise of the Lightning network and second tier payment solutions aided by El Salvador's adoption of bitcoin."
- "The re-emergence of inflation concerns among investors has renewed interest in using bitcoin as a hedge against inflation."
Since the beginning of 2021, more than $ 10 billion has gone out of the gold ETF. On the other hand, over $ 20 billion went into Bitcoin funds. "The increase in the share of bitcoin is a healthy development as it is more likely to reflect institutional participation than smaller cryptocurrencies," said JPMorgan.
And what do you think of this new BTC bull run? Could we see another rally like the one in 2017 and see BTC at 100 by the end of the year? Let us know in the comments section below.
