Bitcoin has rallied strongly towards $31,000, gaining over 10% in the past week, amid speculation that the SEC will approve a spot Bitcoin ETF.
While analysts expect further rises in the BTC price as bulls drive the upward momentum, Bloomberg analysts evaluated historical data.
According to Bloomberg, weekly gains of at least this size in Bitcoin in the last five years heralded an average 10% climb in BTC over the next month of the month in which these increases occurred.
Evaluating the rise in Bitcoin and historical data, analyst Tony Sycamore said:
“As rumors of a Bitcoin ETF being approved by the end of the year become louder, this will be supportive for BTC in the medium term as it will likely bring more institutional players into the sector.
Bitcoin also welcomed the FED's comments implying that the need for another interest rate hike has decreased following the tightening. At this point, BTC found support from the change in tone in the FED's speech.”
Apart from Tony Sycamore, Noelle Acheson, author of the Crypto is Macro Now newsletter, also evaluated the rise in altcoins and stated that the sharp rises in altcoins were most likely to clear short positions.
Finally, Caroline Bowler, CEO of BTC Markets Pty, said, “Volatility in Bitcoin has the potential to increase further.”
Bitcoin continues to trade at $30,670 at the time of writing.
*This is not investment advice.
