Institutional Investment Fuels Bitcoin's Rise to Two-Week Highs
Summary:
Bolstered by growing institutional interest, Bitcoin traded at two-week highs on June 5. Following a strong start to the US trading week, Bitcoin's upward price trend is tied to US spot Bitcoin exchange-traded funds (ETFs), which saw nearly $900 million in net inflows on June 4, according to Farside. Trader Skew insisted this wasn't surprising, adding that leading global exchange Binance could play a pivotal role in strengthening this uptrend. Trading resource Material Indicators noted the resistance between the current Bitcoin spot price and all-time highs of $73,800, while QCP Capital inferred global institutional investment support from successes of various BTC spot ETFs.
On June 5, Bitcoin was enjoying a two-week high, with the upswing in BTC prices being attributed to growing interest from institutional investors. Trading charts showed BTC reaching local peaks of $71,286 on Bitstamp just after the daily close. As we moved into the Asia trading period, the bulls were able to hold the gains, with the focus shifting to the Wall Street open following a strong start to the US trading week.
Skew, a well-known trader, pointed to the influence of U.S. spot Bitcoin exchange-traded funds (ETFs) in sparking this bullish momentum. According to FinTech firm Farside based in the UK, these ETFs experienced nearly $900 million worth of net inflows on June 4, marking the second highest single-day amount in their five-month history.
“This isn't surprising, honestly", Skew noted while reflecting on the BTC price movements. “Yesterday, we observed consistent spot bidding which lasted till late US trade hours. This kind of persistent spot buying through Coinbase is usually linked to Spot ETF, preceding inflows.”
Skew also pointed out that Binance, the leading global exchange, could play a crucial role in pushing the uptrend. “Binance's activity in terms of price movement before and after significant inflow days has been the decisive factor for some time now," he added.
Meanwhile, Material Indicators, a trading resource, drew attention to the strong resistance between the existing spot price and all-time highs of $73,800. It went on to mention that bidders were placing liquidity above crucial $69,000 level, which needs to turn into support - to support BTC price.
The firm QCP Capital mentioned further positive push for Bitcoin from global institutional investment. The firm cited the rapid growth of BlackRock’s BTC spot ETF, which has become the fastest ETF to exceed $20 billion, as an example of this trend. It also pointed to the approval of the first BTC spot ETF in Thailand and the initiation of Australia’s first BTC spot ETF.
The trading firm predicted that unprecedented access for traditional capital on a global scale will unquestionably support the BTC price. It also speculated that forthcoming US employment data might give Bitcoin another push, particularly if it indicates that restrictive financial policies are more impactful than previously estimated.
Published At
6/5/2024 11:05:00 AM
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