Why Is Bitcoin Surging Beyond $29K Today?

Bitcoin BTC/USD experienced a significant surge on Thursday evening, reaching a price of $29,000. 

What Happened: This surge came shortly after Federal Reserve Chair Jerome Powell acknowledged the persistence of elevated inflation levels and expressed the need for lower economic growth to address the issue.

Powell stated, “Incoming data over recent months show ongoing progress toward both of our dual mandate goals — maximum employment and stable prices.” However, he also emphasized that "inflation still remains too high."

On the liquidation side, out of the total $25 million in liquidations that occurred in the last 24 hours, over $20 million worth of BTC shorts was liquidated, CoinGlass reported.

A report from JPMorgan highlighted the uncertainty surrounding the exact timing of spot bitcoin exchange-traded fund (ETF) approvals. Nevertheless, it is anticipated that these approvals will likely happen within the next few months, potentially even before January 10, 2024. 

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Why It Matters: In addition, Morgan Stanley, a global investment bank, released a report indicating that signs are pointing towards the potential end of the cyclical “crypto winter” bear market that has affected the cryptocurrency industry. 

The report delved into the historical pattern of Bitcoin’s performance following halving events, which occur approximately every four years. Furthermore, the report made estimations that the next halving event could take place around April 2024.

Meanwhile, Tesla’s third-quarter financial statement revealed that the electric car company has chosen to hold on to its Bitcoin holdings, rather than sell any of them. As per the company’s balance sheet, Tesla’s Bitcoin holdings are valued at $184 million.

Price Action: At the time of writing, BTC was trading at $29,236.29, up 3.50% in the last 24 hours, according to Benzinga Pro.

Photo by Shutterstock

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