Bitcoin has made a significant comeback, rallying 6.68% in the past 24 hours. As of 07:50 UTC, the leading cryptocurrency was trading at $66,260.81. The rising Bitcoin price momentum comes on the heels of increasing interest from Wall Street in Bitcoin and other digital assets.
CME Looking To Launch Spot Bitcoin Trading
The Financial Times reported today that the Chicago Mercantile Exchange (CME) is discussing the launch of spot Bitcoin trading with market players. The article highlighted that while the plan is still under development and CME has not yet commented, it signifies a deeper incursion by major financial institutions into Bitcoin. This follows the U.S. Securities and Exchange Commission’s approval earlier in the year of stock market funds that buy Bitcoin directly, further legitimizing the digital currency in the eyes of mainstream investors.
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SEC Filings Show Hedge Funds Pouring Billions Into Bitcoin
There are other pointers to the rising institutional interest in Bitcoin as well. Reports indicate that hedge funds have invested over $10 billion in Bitcoin through institutions like BlackRock and Fidelity. For instance, according to recent SEC filings, Millennium Management, led by billionaire Izzy Englander, has made a $2 billion investment spread across several Bitcoin exchange-traded funds (ETFs). This influx of institutional money clearly signals confidence in Bitcoin’s potential as a valuable asset.
Major filing after the market closed today. Next to Wisconsin’s yesterday, certainly one of the most important BTC disclosures to date and it will get huge attention from asset managers. Millennium discloses the following positions:
BlackRock Bitcoin ETF: $844,181,820…
— MacroScope (@MacroScope17) May 15, 2024
Rising Demand Happening Amid Shrinking Supply
The timing of this increased demand is notable, coinciding with last month’s Bitcoin halving. The halving, an event that reduces the reward for mining new blocks by 50%, occurs roughly every four years and is designed to control the supply of Bitcoin.
This guy was mining one #Bitcoin a day with his $800 computer back in 2011 while I was playing Mortal Kombat with my $2k set up. F* my life. pic.twitter.com/0YPRbmYJHh
— Carl ₿ MENGER ⚡️🇸🇻 (@CarlBMenger) May 16, 2024
Historically, halvings have been followed by significant price increases due to the reduced rate of new Bitcoin entering circulation. With demand outstripping supply, Bitcoin appears poised for a major price rally.
Individual US Stakes Taking Pro-Bitcoin Stance
Individual states in the U.S. are also playing a role in fostering Bitcoin adoption. Oklahoma has now made it legal to mine Bitcoin and other cryptocurrencies at home and to keep them in self-custody. This legislative move is a significant victory for U.S.
Oklahoma Passes Law To Protect Bitcoin Mining and Self-Custody – https://t.co/1DNNp821mE pic.twitter.com/y3hddDI2k8
— Crypto News (@lypp) May 15, 2024
Bitcoin investors facing substantial regulatory pressures. By making it easier for individuals to engage with and invest in Bitcoin, Oklahoma is contributing to the growing demand for the digital currency.
Perfect Confluence of Positive Indicators
The rising institutional and retail interest confluence sets Bitcoin on a potential course to reach new heights. Analysts predict that if Bitcoin can break through the $70,000 mark, it may quickly ascend to $74,000. Beyond that, some believe it could surge to $100,000 or higher. The momentum suggests that such targets are within reach, provided the demand continues growing and institutional interest remains strong.
Bitcoin’s rally since yesterday reflects growing confidence and interest from institutional investors and individual states. With significant investments from hedge funds and supportive legislation at the state level, Bitcoin is on a trajectory toward higher valuations. If current trends continue, the cryptocurrency could soon breach new milestones.
Related: Wisconsin State Pension fund makes historic $99 million investment in Bitcoin ETF
Bitcoin Trading At Key Resistance Level After 24 Hour Rally
Source: TradingView
After a solid rally over the last 24 hours, Bitcoin has hit strong resistance at $66,263. In the last few hours, Bitcoin has formed a double top at this price level, an indicator that bulls are yet to garner enough momentum to push prices higher despite two attempts at resistance. If bulls can gain enough momentum to push Bitcoin through the $66,263 resistance today, then $70k would be an achievable price target.
On the other hand, if Bitcoin bulls fail at the $66,263 resistance, two scenarios could play out today. The first is a possible consolidation between the $66,263 resistance and intra-day support at $65,791.
In the other scenario, bears take control and push Bitcoin through the $65,791 support in the day. In such a scenario, Bitcoin could enter an intra-day correction that could drop to around $63,153.
Why Bitcoin Price Could Hit $70k Today
Of the three scenarios today, the odds are higher that Bitcoin could be headed to $70k within the day. That’s because there is a lot of positive news about Bitcoin today. The report by the Financial Times about the CME push towards spot Bitcoin trading is a big deal in itself. It could quickly propel Bitcoin to prices above $70k within the day.
Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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