Bitcoin
Bitcoin Strengthens Above $67K, Analysts Predict Next Leg Up Is Not Far Away
(Kitco News) – Bitcoin (Bitcoin) the price rose above $67,000 in early trading Friday as investors reduced their activity in the markets ahead of another round of Fed speakers expected to provide more insight into central banks’ thinking on interest rates. fees.
San Francisco Fed President Mary Daly and Fed Governor Christopher Waller are scheduled to speak, and the market is anxiously waiting to see whether they will stick to the line that the Fed intends to follow the data and wait for clear signs of cooling inflation before taking action. to lower interest rates.
For now, macroeconomic developments continue to drive price developments across all financial markets. The recent rally for cryptocurrencies and stocks came after the April CPI print was cooler than expected at 0.3% month-over-month compared to the market expectation of 0.4%.
“This quelled rumors of a potential rate hike and paves the way for Powell to consider a rate cut in the coming months,” Ryze Labs analysts said.
Focusing on Bitcoin, the return of inflows into spot BTC exchange-traded funds (ETFs) coincided with the move back above $65,000, as the arrival of institutions excited traders and revitalized bulls.
“On May 15, total Bitcoin ETF inflows increased to $303 million, continuing the positive trend following the retail capitulation highlighted two weeks ago,” said Ryze Labs analysts. “Traditional companies have been accumulating Bitcoin ETF products.”
“Notably, the state of Wisconsin disclosed a nearly $100 million purchase of IBIT, Blackrock’s BTC spot ETF. Bitwise reported that 563 investment firms hold $3.5 billion in Bitcoin ETFs and estimates that more than 700 firms will report holdings by this week’s 13F filing deadline. Millennium and Schonfeld deposited investments of approximately 3% and 2% of their AUM in the BTC spot ETF, respectively”, they highlighted. “We remain optimistic that more sovereign funds and institutions will adopt Bitcoin as a reserve asset on their balance sheets.”
The price of Bitcoin rose higher as news about the various 13F filings circulated through the cryptosphere, and Friday’s price action shows that King Crypto may be preparing to try and set a new all-time high.
BTC/USD Chart by TradingView
At the time of writing, Bitcoin is trading at $67,270, up 2.08% on the 24-hour chart.
This cycle is different
“The crypto market has come to life after several weeks of uncertain sideways movement. Several assets, including Bitcoin, have witnessed solid bullish action,” said Rachel Lin, CEO and co-founder of SynFutures. “At the time of writing, BTC is up almost 8% over the past week, while SOL is up 12% and TON is up 7%. Memecoins are once again witnessing strong buying, with DOGE up 5%, SHIB 10% and PEPE a massive 26% compared to last week.”
“However, not all assets perform as expected,” Lin noted. “Although BTC rose 8%, ETH barely moved. The same can be said for several other large assets like ADA, AVAX, TRX and LINK. This divergence has been one of the main features of this crypto cycle. During the last cycle, we witnessed most assets moving in tandem; This time, that didn’t happen.”
Lin said there are a variety of reasons for this and expects this divergence to continue throughout the bull market.
“The reason for this can vary. It could be due to increasing user awareness of different projects, the ever-increasing market caps of altcoins, or even the fact that meme coins are now sucking up most of the liquidity that would otherwise flow from Bitcoin to altcoins.” , she said. . “Whatever the reason, it is clear that this cycle will see certain currencies outperform others by a significant margin.”
When it comes to the outlook for Bitcoin’s advancement, she said SynFutures “sees a strong move higher following the failed collapse of early May.”
“Bitcoin is not only above the crucial support level, but it has also surpassed the previous lower high of 65,500,” she noted. “Ideally, we should see Bitcoin break above 67,000 to end the lower-high-low-low pattern we have been following since March.”
“On the fundamentals side, the current market rally is likely driven by macro news of lower US inflation,” concluded Lin. “This is fueling speculation about a possible rate cut. Risky assets like crypto would likely perform very well if that happened.”
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