As a researcher with a background in finance and experience in the crypto market, I find the recent trend of institutional buying into US Spot Bitcoin ETFs intriguing. Over the past four days, we have seen successive positive inflows totaling over $923 million, which has coincided with a rebound in Bitcoin’s price. This could be a sign that institutions are returning to buy Bitcoin now that the correction seems to be ending.
As a seasoned crypto investor, I’ve noticed an intriguing trend in the market recently. For the past four consecutive days, US Spot Bitcoin ETFs have experienced positive inflows. Simultaneously, Bitcoin’s price has been on an upward trajectory. Could it be that institutions are jumping back into the $BTC market now that the correction seems to be coming to an end? The signs are certainly pointing in that direction.
Second wave of institutional buying inbound?
Bitcoin (BTC) has almost left its correction phase of the past 10 weeks in the past. Institutional investors are making purchases once more, and optimism is gradually returning to the cryptocurrency market. The Fear and Greed Index, which measures market sentiment, is now back in the “greed” zone.
Approximately $257 million more was invested in US Spot Bitcoin ETFs on Thursday, adding to the $303 million poured in the previous day, $100 million on Tuesday, and $66 million on Monday. Institutional interest is resurfacing, potentially marking the commencement of a new significant buying trend.
Bitcoin compared to Beanie Babies
As a crypto investor, I’ve noticed an increase in institutional buying of Bitcoin lately, with pension funds, family offices, banks, and asset managers recognizing its potential. However, criticisms against Bitcoin have become more vocal as well. For instance, Federal Reserve President Neel Kashkari compared Bitcoin to Beanie Babies, implying that it has yet to demonstrate any real-world utility.
A hedge against currency debasement
The heads of those mentioned institutions are highly unlikely to share his viewpoint. A noteworthy application of this concept is the precautionary measure against the potential devaluation of fiat currency.
Jack Mallers, the CEO and founder of Zap, a bitcoin firm specializing in investment and transactions, responded to Neel Kashkari’s remarks by providing some context.
“Our governments have taken large loans from future generations, using up resources and expending effort, without having a clear plan to repay them.”
Governments plan to realize that loss by debasing the currency.”
$BTC assault on all-time high
The outlook for Bitcoin’s weekly chart is becoming increasingly optimistic. On Friday, the Bitcoin price surged to reach the peak of the bull flag at approximately $66,800. Bullish investors are hoping that the upcoming weekend will see a breakthrough above this resistance level and result in a weekly closing price above it. Such an occurrence could pave the way for Bitcoin to challenge its all-time high of around $73,600.
In addition to the significant investments pouring into Spot Bitcoin ETFs from institutions, the bullish sentiment is further bolstered by a key development in the weekly stochastic RSI. This indicator’s crossover above the 20 level can provide substantial momentum for Bitcoin’s price rise over the coming weeks.
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2024-05-17 13:04