Bitcoin Stabilizes Under $71K Amid Spot ETF News, Eyes Critical $72K Level

June 5, 2024

Bitcoin (BTC), the leading cryptocurrency, has maintained a steady position below the $71,000 mark, despite a wave of positive developments in the world of exchange-traded funds (ETFs). The recent launch of Australia’s first spot Bitcoin ETF and the imminent approval of spot Ethereum ETFs in the United States have generated renewed optimism in the market, though the crucial $72,000 threshold remains a key indicator for potential bullish momentum.

The previous week, characterized by low volatility, saw Bitcoin, the world’s largest crypto asset by market capitalization, suffer a 1.1% decline in its price, closing at about a $67,800 trading price. However, based on the insights and analysis by a research analyst, it appeared that this week holds a promise to the king of crypto.

According to Matteo Greco, a research analyst at Fineqia International, Bitcoin’s price stabilization can be attributed to a series of strategic inflows and growing institutional interest. These factors include:

Consistent Inflows to Spot BTC ETFs: “The past week saw BTC Spot ETFs experiencing gradual and consistent inflows. Over four trading days, the cumulative net inflow totaled approximately $170 million,” Greco explained in a note sent to The Shib Daily. This marks the third consecutive week of positive flow, signaling a reversal in trends after five weeks of subdued demand. In total, spot BTC ETFs have witnessed 14 consecutive trading days of net inflow, with the overall net inflow since inception approaching nearly $14 billion.

Institutional Interest: The increased holdings by major ETFs highlight the growing interest and commitment from traditional finance players. Blackrock Bitcoin ETF (IBIT) now officially holds more BTC than Grayscale’s ETF (GBTC). GBTC had previously operated as a trust before transitioning to an ETF in January 2024. Both ETFs currently manage over $19 billion in assets, with IBIT holding approximately $19.7 billion and GBTC closely trailing at around $19.2 billion.

Regulatory Approvals for Spot Ethereum ETFs: “The SEC recently approved Ethereum (ETH) Spot ETFs, which are poised to begin trading once the SEC greenlights the S-1 filings,” Greco noted. This approval process demonstrates the regulatory body’s increasing acceptance and support for digital assets.

Launch of Spot BTC ETF in Australia: Australia saw the launch of its first spot BTC ETF on Tuesday, the 4th. Monochrome Asset Management, the issuer, obtained approval for its spot BTC ETF (IBTC) in April and launched its product on Cboe Australia today, after obtaining the green light from the Australian regulator.

“The approval of BTC Spot ETFs in the US earlier this year paved the way, followed by similar product launches for BTC and ETH in Hong Kong. Additionally, news of ETH Spot ETF approval in the US and BTC Spot ETF trading in Australia further highlights the industry’s momentum,” Greco said.

With the recent price surge in Bitcoin, market analyst Willy Woo predicted that if the king of crypto reaches $72,000, it will trigger a massive wave of forced selling by short sellers. This forced selling will then turn into buying pressure, potentially driving the price of Bitcoin up to new record highs.

As of 11:09 a.m. ET on Wednesday, Bitcoin (BTC) was trading at $68,919.01. Over the past 24 hours, the price has seen a slight decrease of 0.27%. Despite this minor dip, Bitcoin’s performance over the last week has been characterized by fluctuations, with a closing price of approximately $67,800, marking a 1.1% decline from the previous week’s closing value of around $68,500.

However, looking at the 30-day performance, Bitcoin has demonstrated a robust growth of 7.98%, indicating a positive trend amid short-term volatility. The 24-hour trading volume stands at an impressive $76.41 billion, showing a 1.55% increase, which underscores strong market activity and sustained investor interest.

Bitcoin’s market capitalization is approximately $1.34 trillion, supported by a circulating supply of around 19 million BTC. These metrics highlight Bitcoin’s dominant position in the cryptocurrency market, the latest data from CoinMarketCap showed.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice.

The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Read More

Leave a Reply

Your email address will not be published.