Experts suggest that there are several factors that could push Bitcoin to maintain its bullish trend in the coming days, especially after the recent completion of the halving in April.
Bitcoin registers an increase of 0.3% in the last 24 hours, currently trading at $66,379. This rise led to short liquidations exceeding US$48 million, driven by the fact that BTC, the main digital asset by market capitalization, surpassed the US$66,000 barrier. While, Ethereum It struggles to maintain the US$3,000, trading just above that amount.
This rebound has occurred after the publication of inflation data in the United States, which showed a month-on-month increase in the CPI of 0.3% and a year-on-year increase of 3.6%. These figures represent the lowest 12-month inflation since April 2021 and the smallest monthly increase since December, suggesting a cooling in inflation.
This context has also had an impact on the spot exchange-traded funds (ETFs), which have recorded the highest trading volumes in the last seven weeks. According to data from Santiment, daily trading volume among the seven largest spot Bitcoin ETFs exceeded $5 billion last Thursday, May 16. Santiment indicates that these investment products are regaining “a lot of momentum” after several weeks of modest performance following the all-time highs reached by Bitcoin in March.
Data from Farside Investors reveals that the majority of Bitcoin spot ETFs have seen net capital inflows in the last week. Even the Grayscale Bitcoin Trust (GBTC), which has been a significant burden on the market, has achieved two consecutive days of positive flows, despite recording days with significant capital outflows.
Bitcoin: what analysts expect
Analysts at QCP Capital suggest that there are several factors that could push Bitcoin to maintain its bullish trend in the coming days, especially after the recent completion of the halving in April. “We have seen multiple ‘V’-shaped recoveries every time Bitcoin fell below $60,000, establishing itself as a bearish buy zone,” they say.
These analysts also predict that Bitcoin could return to the highs of almost $74,000, noting that there has been significant buying of $100,000 and $120,000 call options for December 2024. Institutional demand for Bitcoin continues to grow, with large asset managers like Millennium and Schonfeld investing approximately 3% and 2% of their assets under management in spot Bitcoin ETFs.
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Recently, Bernstein analysts warned that the ETF cooldown was just a “short-term pause” before they become more integrated with private banking platforms, wealth advisors and other brokerage platforms. “There is a natural adaptation period for Bitcoin to become an accepted portfolio allocation recommendation and for platforms to establish the compliance framework for selling Bitcoin ETF products,” they commented.
Finally, the Chicago Mercantile Exchange (CME) is considering offering Bitcoin spot trading to its clients, which could challenge Binance and Coinbase’s position in the cryptoasset market. The world’s largest futures exchange has been in talks with traders interested in trading Bitcoin on a regulated market, which could significantly impact these two major players in the sector.
Source: Ambito
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