Big Shake-up in Bitcoin (BTC): $5.5 Billion Crisis on the Horizon!

As reported by Kriptokoin.com, the cryptocurrency market had an exciting week as Bitcoin (BTC) reached its highest level in the last three months, exceeding $69,000. This rally completed Bitcoin's strongest two-month uptrend week. However, it remains to be seen whether the price will approach $73,000 and set a new record. Market experts are evaluating the significant factors behind this surge.

Current Status of Bitcoin Price

Bitcoin (BTC) is trading at $67,800 after a sharp drop from just above $69,000. This drop caused the market to experience a liquidation of $70 million. These losses in long positions demonstrate how sensitive the market is to fluctuations.

According to analysts, the demand for spot Bitcoin ETFs in the US is a key factor behind this rise. Institutional investors bought $2.1 billion worth of Bitcoin ETFs last week. These purchases indicate demand that exceeds daily mining supply. Furthermore, the purchases will continue to drive the price upwards.

Institutional Momentum for Bitcoin (BTC) and Future Expectations

Zerocap Chief Investment Officer Jonathan de Wet said that the demand for ETFs will take Bitcoin to new highs. According to him, this institutional interest is an important part of the short-term rise. At the same time, the relaxation of monetary policy until 2025 will lead to further appreciation of Bitcoin.

In addition, MicroStrategy's plans to become a Bitcoin bank and the SEC's approval of options are among other factors that increase the interest of institutional investors. All these factors may contribute to further upward movement of Bitcoin in the coming weeks.

US Debt and Market Rise

The increasing public debt of the United States has led investors to risky assets. Bitcoin stands out among these assets. ETC Group analysts note that the uptrend has returned and reached the highest levels since March. At that time, the value of the crypto market exceeded $2.8 trillion.

Another factor contributing to this rise is the perception of Bitcoin as an alternative asset to US Treasury bonds. However, the market continues to be vulnerable to geopolitical influences and fluctuations.

How Will the Option Expiry Affect Bitcoin?

The upcoming $5.5 billion option expiration on October 25th could have a significant impact on the price of Bitcoin. According to CEX.IO analysts, there is a possibility that Bitcoin could drop to $64,000. However, breaking the $70,000 level could force option sellers to buy more Bitcoin, accelerating the rise.

Theodorou reminds that Bitcoin historically has shown strong performance in the fourth quarter. Market participants believe that this week could be a major turning point for the crypto world.

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