Bitcoin Soars Past $71,000: Key Factors Driving the Rally

Mainstream Acceptance

  • The London Stock Exchange plans to accept applications for Bitcoin and Ethereum Exchange-Traded Notes (ETNs), indicating growing institutional interest in cryptocurrencies.

Short Squeeze

  • Short sellers who bet against Bitcoin were forced to buy back their positions as the price surged, further fueling the rally.

Capital Influx

  • Stablecoin Tether (USDT) saw significant minting, suggesting new money entering the market. A whale or institution deposited a large amount of USDT into Binance, hinting at major trading activity.

Demand for Bitcoin ETFs

  • Bitcoin Exchange-Traded Funds (ETFs) in the US have attracted billions of dollars in assets, signaling strong demand from institutional investors.