Why is Bitcoin price up today?
Bitcoin’s price increased by 2.65% in 24 hours, reaching approximately $102,645 on December 14, driven partly by MicroStrategy’s entry into the Nasdaq 100 Index. MicroStrategy has significantly raised its valuation through a commanding 500% growth in 2024, having accumulated over $40 billion in Bitcoin since 2020. The inclusion of MicroStrategy in the index necessitates market purchases of its stock, which could lead to further Bitcoin acquisitions, creating a bullish cycle. Additionally, record inflows into US-based spot Bitcoin ETFs have elevated investor sentiment, with cumulative flows increasing from $30.43 billion to $35.60 billion from late November to mid-December. Major Bitcoin acquisitions by entities like MicroStrategy and MARA Holdings reflect rising institutional interest. Meanwhile, state proposals for Bitcoin reserves highlight a broader trend of adoption. However, Bitcoin's recent price movement is testing a rising wedge pattern, suggesting possible pullbacks as it consolidates in a volatile market.
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