Bitcoin's price remains static due to ongoing losses in spot Exchange-Traded Funds (ETFs) for the second consecutive week.
Fresh Take:
bitcoin's movements remain in the spotlight as it hovers around the $105,000 mark, despite a shift in investor sentiment and recent ETF outflows.
On the weekend of June 8th, Bitcoin, with a 0.06% dip, stood at $105,550. This represents a 5% increase from its lowest point last week, but it's still 5.75% below its highest point this year.
The digital currency has seen a bit of volatility due to investor profit-taking and outflows from exchange-traded funds (ETFs). Data indicates that ETFs shed $128 million last week, following a $157 million loss the week before – the first back-to-back weekly outflows since April.
Sentiment among crypto investors appears to be turning neutral this month, as the fear and greed index has dropped to the neutral point of 56. Bitcoin has also been affected by rumors of China possibly liquidating its seized coins, with the country reportedly holding 190,000 coins worth over $20 billion.
However, there are two potential factors that could drive Bitcoin higher in the coming weeks:
- Decreasing supply on exchanges: This month, the supply of Bitcoin on exchanges has plummeted, with currently 1.18 million Bitcoin, down from 1.35 million at the start of the month. This represents a marked decrease from over 3.5 million in 2020.
- Increased corporate investments: Companies such as Strategy are raising over $2 billion more to invest in Bitcoin, and Trump Media has filed to raise up to $12 billion for the same purpose. Other firms like MetaPlanet and The Blockchain Group are also ramping up their investments.
Background: Though investor profit-taking and ETF outflows have caused some short-term fluctuations, Bitcoin's solid technicals provide a bullish outlook. The digital currency has slowly formed a cup-and-handle pattern and is currently completing the handle section, with substantial support from the 50-day and 200-day moving averages, and the major S/R pivot point of the Murrey Math Lines tool. This indicates a likely rebound in the near future, with the initial target being the cup's upper side at $109,477, and the possibility of reaching $150,000 after surpassing the all-time high of $111,900.
- Amidst Bitcoin's fluctuation near $105,000, other cryptocurrencies such as altcoins, Cardano, and Solana are also under the finance industry's radar, demonstrating the wider influence of technology on the sector.
- Crypto decentralized exchanges (DEX) are witnessing heightened activity as investors seek opportunities beyond traditional exchanges, reflecting the growing importance of blockchains in the global finance landscape.
- With cryptocurrency investment sentiment turning neutral, some custodians are eyeing initial coin offerings (ICO) as potential wealth-generating avenues, bridging the gap between traditional finance and the crypto market.
- As Bitcoin aims to regain its glory, analysts predict that it could rebound to the cup's upper side at $109,477, and potentially reach $150,000 if it surpasses its all-time high of $111,900, bolstered by a decreasing supply on exchanges and increased corporate investments.
- Meanwhile, the aftermath of the rumored liquidation of China's seized Bitcoin coins and the continuous ETF outflows might pose challenges for Bitcoin's short-term outlook, emphasizing the need for monitoring market sentiments and technical indicators.
- Bitcoin's bullish outlook also encourages enterprising companies and entrepreneurs in various industries to explore integrating Bitcoin and other cryptocurrencies, positioning themselves at the forefront of the burgeoning technology revolution in finance.
%20for%20the%20second%20consecutive%20week.){kind=link}