Causes Of BTC Prices Rising Apart From Bitcoin ETF

Bitcoin prices experienced a significant increase. (Photo; Doc. Pexels)

JAKARTA Bitcoin as the world's largest crypto asset by market cap, has again attracted public attention. Because Bitcoin has suddenly jumped significantly in recent weeks. The increase in BTC occurred after several months earlier the crypto market plummeted. The surge in BTC prices was apparently caused by a number of factors.Kiko's crypto data analytic platform recently shared information on factors affecting the increase in Bitcoin prices. According to Kaiko, there are four factors that contribute to Bitcoin's latest rally of up to US$35.000 (approximately IDR 500 million), namely trading volume, stable liquidity, volatility and Exchange Traded Funds (ETF) Bitcoin.

First, the trading volume of Bitcoin has seen a shift in the past six months. Despite a lower slowdown in trading volume and volatility over the summer, significant changes have occurred in the last two weeks, mainly due to rumors of false ETF Bitcoin spot approval linked to BlackRock.

Second, Kaiko noted that the market does not appear to pay much attention to the pressure on the price of Bitcoin which has reached its highest level since May 2022. Although prices are on the rise, Bitcoin liquidity remains stable, with bids and demand on order books of about 1% of the middle price, which has remained stable over the past two weeks at around $100 million.

Third, Kaiko said that the market expects short-term volatility without any volume triggers during December. One of the triggers that might affect the market is an anticipation of news about the SEC's Bitcoin spot ETF which is scheduled to be released in January.

Overall, Kaiko noted that Bitcoin correlations with equity, including the Nasdaq 100, have declined to negative territory for the first time since July. This could be an indication that the price of Bitcoin is also influenced by the geopolitical war between Israel and Hamas.

Despite the analysis showing Bitcoin price movements affected by these factors, experts remain optimistic about the potential growth of Bitcoin in the long term.

Robert Kiyosaki, author of Rich Dad Poor Dad, for example, has recommended an allocation of 25% for Bitcoin and Real Estate to investors as a step to avoid a potential future economic collapse, with Bitcoin's price target of US$135,000 (Rp2.1 billion).

In addition, Ark Invest leader Cathie Wood also believes that the price of Bitcoin could reach $1 million by 2030, with the approval of BTC's ETF as one of the potential drivers of this growth. Thus, the market will play an important role in determining the direction of the price of Bitcoin going forward.