Bitcoin Price Prediction – BlackRock Allocation Fund Seeks Approval for Bitcoin Investment, Fueling Speculation for New Highs
Bitcoin continues consolidating, with buyers slowly pushing it back toward its all-time highs. In the last 24 hours, Bitcoin has climbed by 1.66%, and as of 10:53 GMT+3, it was trading at $67,400.
ETF Inflows Are Getting Stronger
The ongoing consolidation in the price of Bitcoin is a reflection of the steady accumulation by institutional investors. Since the Bitcoin ETFs were approved, institutional investors have been buying quite aggressively and now control 1% of the total Bitcoin supply through spot ETFs.
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spot ETFs have bought a full 1% of the entire bitcoin supply in just two months pic.twitter.com/NPuiK0uXuj
— foobar/ (@0xfoobar) March 8, 2024
Even more interesting is that institutional players’ buying up of Bitcoin is going strong. The daily buying totals are as strong today as when the Bitcoin ETFs were first launched. This is evident in the fact that yesterday, the total net inflows to ETFs stood at $472.6 million. It is a strong indicator that even at current prices, institutional investors expect Bitcoin to head even higher, especially with the halving set to cut Bitcoin into circulation significantly.
[1/4] Bitcoin ETF Flow – 07 March 2024
All data in. Net total inflow of $472.6m. Another strong day, with Fidelity performing well, with +$473.4m of flow
Over $10 billion withdrawn from GBTC since 11th Jan 2024 pic.twitter.com/rpWyaqGxhL
— BitMEX Research (@BitMEXResearch) March 8, 2024
BlackRock’s Global Allocation Fund Wants Bitcoin
The growing appetite for Bitcoin through ETFs is also evident in the moves that major players like BlackRock are making. A while back, BlackRock Bitcoin ETFs started trading in Brazil. Now BlackRock’s Global Allocation fund is seeking approval to start investing in Bitcoin ETFs. This indicates the growing importance of Bitcoin as a must-have asset in a well-diversified portfolio. It is also a confidence boost to retail money that Bitcoin has a bright future ahead of it, even for those buying at current prices.
‼️BREAKING: BlackRock’s Global Allocation Fund Seeks Approval for Investing in #Bitcoin ETFs. pic.twitter.com/QoBbbUYNFC
— Pushpendra Singh Digital (@PushpendraTech) March 8, 2024
Another pointer to the buyer strength is that selling by in-profit short-term investors has not put a dent in the price. Data shows that short-term investors have moved $4.3 billion worth of Bitcoin to exchanges, an indicator that they may be exiting their positions to take profits. This has little impact on the price, with Bitcoin’s continued consolidation above $66k. It’s an indicator that buyers are quickly taking up all the Bitcoin being sold, and there still is not enough of it to go around.
Short-term investors move $4.3 billion in profits to exchanges.
– March 6: Short-term Bitcoin holders moved 65,000 Bitcoin to exchanges.
– Second highest profit transfer in 5 years, next to April 2019.
– Current value is significantly higher due to Bitcoin’s price increase.… pic.twitter.com/PQidFCIsze
— Kashif Raza (@simplykashif) March 8, 2024
The growing appetite for Bitcoin by retail and institutional money is evident in the Bitcoin fear and greed index, which now stands at 81. Such levels of optimism at $67,000 per Bitcoin only show that the market expects prices above $150k or more in the coming weeks.
Overall, the ongoing consolidation in the price of Bitcoin is underpinned by institutional money that continues to buy Bitcoin quite aggressively through ETFs.
Bitcoin Consolidation Amidst Strong Buying Activity Points To Imminent Breakout
The price of Bitcoin indicates thinning selling volumes, a pointer to a potentially sudden breakout that could push BTC to prices above $80k.
Bitcoin is currently in a consolidation but is slowly edging higher as selling volumes thin out. This indicates that few investors are short Bitcoin, even as buyers continue buying the asset. If this triggers a rally pushing Bitcoin through the $69k all-time high, which is now a key resistance, Bitcoin could easily see prices above $80k pretty fast. It could begin another super cycle that takes Bitcoin to prices unseen before.
However, if enough buyers don’t enter the market today, Bitcoin could continue consolidating around the $66k price level going into the weekend.
On the other hand, if short sellers push Bitcoin through $66k, then prices around $59k/$60k, now a critical support level, could be tested in the day.
Why A Breakout To $80k Is Imminent
While Bitcoin could continue consolidating or even turn bearish in the day, the odds are that a breakout to $80k is more likely.
That’s because the demand for Bitcoin, especially by institutional money, is getting stronger. This is evident in the continued strength of inflows into Bitcoin ETFs with each passing day.
Also, overall market sentiment is likely to be lifted by news of Blackrock’s Global Allocation Fund now seeking approval to invest in Bitcoin. This is big as it gives the market the impression that BlackRock believes Bitcoin is an asset worthy of being part of a high-performance yet stable, diversified portfolio.
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Kamal Masri
Kamal is an experienced financial analyst with a demonstrated history of working in the Financial Market. Skilled in Equities, Capital Markets, Portfolio Management, Risk management, and Corporate Finance. Kamal has worked at some of the leading online finance publications providing his expert knowledge on cryptocurrency. Kamal has written widely on digital assets across the stock and crypto media space and beyond, including for Coindesk, Ethereum World News and The FinTech Times.
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