Despite this moderation, optimism in the market remains evident. Much of the recent gains are due to a significant improvement in net capital inflows into BTC spot exchange-traded funds (ETFs).
Cryptos are taking a breather, but there are signs that Bitcoin is preparing a big leap
The market of cryptocurrencies experience a lull in its recent bullish streak. Bitcoin (BTC) reduced its value by 0.3% in the last 24 hours, standing at US$70,900 after having recently exceeded US$71,000, reaching levels not seen since May 21. On the other hand, Ethereum (ETH) increases its value by around 1%, consolidating above US$3,800.
Among altcoins, the outlook is predominantly negative. Tokens such as uniswap (UNI) and binance coin (BNB), which had shown notable performance in previous days, have fallen significantly, especially UNI. Other cryptocurrencies such as XRP, solana (SOL), dogecoin (DOGE), cardano (ADA), shiba inu (SHIB) and avalanche (AVAX) have given up approximately 1%, while toncoin (TON) has increased its losses to 2%.
Despite this moderation, optimism in the market remains evident. Much of the recent gains are due to a significant improvement in net capital inflows into spot bitcoin exchange-traded funds (ETFs), which recently had one of the best days in their history. According to experts, institutional demand is increasing again, which could lead bitcoin to reach new all-time highs in the coming weeks, if it manages to overcome the $72,000 barrier.
Bitcoin: what the market analyzes
Recently, analysts at Bernstein have indicated that the cooling of institutional demand was temporary and that BTC spot ETFs would rally again in the near future, thus boosting the price of bitcoin.
In line with this, QCP Capital analysts have highlighted that movements in the bitcoin futures market reflect “strong bullish sentiment”, which could lead bitcoin to break above $74,000 this month. Additionally, Matrixport, a cryptocurrency investment services company, notes that a rally above $72,000 could trigger a short squeeze, as there are approximately $1.5 billion in leveraged futures contracts betting on lower prices. If these contracts were to settle around those prices, the upward movement would intensify.
As for ETH, analysts are also quite optimistic. A recent report from K33 Research indicates that, following their eventual IPO, spot ether ETFs could raise around $4 billion in their first five months of trading. Additionally, VanEck, one of the companies that have requested the creation of a spot ETH exchange-traded fund, suggests that these investment products could take Ethereum to $22,000 by the end of this decade, which would imply that ETH It would quintuple its price in the next five years.
Finally, investors continue to pay attention to macroeconomic data from the United States. In particular, the May employment reportwhich will be known tomorrow, will be key to defining the perspective of the Federal Reserve (Fed) on possible interest rate reductions in the second half of 2024.
Source: Ambito
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