Why is Bitcoin price up today?

Dec 01. 2023

By Kyle White

Bitcoin (BTC 🔺$38,813) price is up today, topping $39,000 for the first time in over a year. The rally comes as traders’ bullish bias for Bitcoin produced the best November performance since 2020. After traders digested the Binance settlement, the hype around the markets’ belief that a spot BTC exchange-traded fund (ETF) would be approved and bring significant cash inflows to Bitcoin, pushing prices across the crypto market higher.

Bitcoin price. Source: TradingView

Now that BTC has notched the best monthly close in 19-months, let’s look into the reasons why Bitcoin price is up today.

Dust from the Binance saga begins to settle

Initially, Bitcoin price flashed mixed signals after former Binance CEO Changpeng “CZ” Zhao’s guilty plea and the the exchange agreed to pay a $4.3 billion settlement to the U.S. Department of Justice (DOJ) on Nov. 21. After taking some time to digest the outcome, the market began to notice that Binance exchange was not having a mass exodus of funds like FTX did when its liquidity crisis first became public. Leaders in the crypto market like Galaxy Digital CEO Mike Novogratz see the settlement as a net positive overall.

While initially, Binance’s Bitcoin reserves were down 17% from their all-time high, the exchange is starting to see BTC inflows again. Since the initial outflows, Binance’s Bitcoin balance is up nearly 1%. By comparison, FTX BTC reserves were depleted by 99.9% from the all-time high when the exchange experienced a run on the bank in November 2022 and never recovered. Research for on-chain analytics firm Nansen concluded that it is back to normal business for the largest crypto exchange, Binance.

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