Bitcoin Braces for Institutional Inflows Amid Anticipation of U.S. ETF Approval
Summary:
Bitcoin (BTC) might witness a substantial increase in institutional investments amid anticipation of a U.S. exchange-traded fund (ETF) approval. The sentiment has boosted Bitcoin prices to an 18-month high. However, trading firm QCP Capital predicts a potential slowdown from the current highs due to lower highs on Bitcoin's daily relative strength index (RSI). Currently, Bitcoin is trading near $36,500, with Ether (ETH) surpassing the $2,000 mark.
Anticipations of a U.S. exchange-traded fund (ETF) approval for Bitcoin (BTC) is triggering a surge of institutional investments in the cryptocurrency, says Dan Tapiero, the founder and CEO of 10T Holdings. As enthusiasts await the potential green light for a Bitcoin spot price ETF, Bitcoin's price has also seen an upward movement. Riding on this sentiment, BTC/USD has reached an 18-month high milestone, while institutional outlooks are shifting as signified by CME Group's Bitcoin futures markets surpassing Binance in terms of open interest.
Dan Tapiero views this as a tipping point, stating that this is where strong "institutional adoption" of Bitcoin begins and expects a flood of capital from the conventional financial world. Aggregate Bitcoin futures open interest crossed the $17 billion mark recently, pointing at a seven-month peak. Although the current figure stands slightly less at $15.5 billion, the momentum remains strong.
Many are optimistic about the possible ETF approval, penciled for 2024 but could potentially be granted this month. Trading firm QCP Capital, in a recent market update, underlined an added advantage for the crypto market in the form of a potential spot ETF for Ether (ETH).
Notwithstanding the generally bullish view for Bitcoin, QCP Capital does forecast a potential slowdown from the current highs due to a sequence of lower peaks on Bitcoin's daily relative strength index (RSI) values. Despite this, it anticipates crypto prices to remain buoyant, with any price drops likely to be snapped up quickly by eager traders. However, caution is still advised due to significant resistance levels and a triple bear divergence with the RSI indicator, traditionally a reliable sign of dwindling momentum. Currently, BTC/USD is trading near $36,500, with ETH/USD on a rise, clearing the $2,000 threshold.
Investment in cryptocurrencies entails risk, and it is suggested that individuals perform their own analysis before making a decision.
Published At
11/10/2023 9:03:05 AM
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