Bitcoin has rebounded from last week’s dip, showcasing a bullish resurgence early in the week. As of 08:57 UTC, Bitcoin was trading at $65,150, marking a notable 2.28% increase and signaling a renewed uptrend in its price trajectory as Grayscale ETF records first inflows.
Grayscale ETF Records Inflows For The First Time In Months
One of the pivotal factors propelling Bitcoin’s upward momentum is the resurgence of investor interest in the Grayscale Bitcoin Trust (GBTC) ETF. After 80 days of outflows, the Grayscale ETF Records inflows, with Friday alone witnessing an influx of $63 million.
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Bitcoin ETF Daily Flow
GBTC US$ Flow: 63 million
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This influx occurred despite the high fees associated with the GBTC, suggesting a profound bullish sentiment among investors increasingly undeterred by the fee structure. This renewed enthusiasm for Bitcoin through avenues like the GBTC ETF underscores growing confidence in the cryptocurrency’s long-term potential.
Block Halving Taking Effect
Moreover, fundamental factors surrounding Bitcoin have contributed to its current bullish sentiment. Despite initial post-halving stagnation, the impact of the halving event is gradually manifesting as the supply of Bitcoin diminishes relative to escalating demand.
Notably, the launch of new Exchange-Traded Funds (ETFs), such as the recently debuted Hong Kong ETF on April 30, has further improved Bitcoin’s appeal to investors, fueling its upward trajectory.
Bitcoin Hits One Billion Transactions
The anticipation of Bitcoin breaking through its recent highs of $73,000 looms large as multiple catalysts converge to drive up momentum. Another significant development contributing to Bitcoin’s ascent is the milestone achievement of processing its one-billionth transaction on the blockchain network. This milestone is a testament to the robustness of the Bitcoin network and positions Bitcoin as a formidable contender against traditional financial institutions such as Visa.
FOMO Building Up As Positive Indicators Increase
Industry analysts and experts foresee heightened adoption of Bitcoin, particularly among institutional investors, as they increasingly recognize its potential as a store of value and hedge against inflation. The confluence of positive news surrounding Bitcoin’s adoption and technological milestones fuels FOMO among investors, especially amidst the resurgence of positive price momentum.
Bitcoin’s renewed momentum is driven by renewed investor interest, fundamental strengths, and significant milestones, positions it for further growth in the foreseeable future.
Bitcoin Buying Volumes on the Rise, Signal To Rising Bullish Momentum
Bitcoin has started the week on a bullish note, rebounding from recent bearish pressures that saw a rejection at $56,804. The bullish reversal has solidified a robust support level at $63,187, indicating renewed buyer confidence. Sustained momentum above this level could propel Bitcoin towards the critical resistance point at $71,278. Breaking through this resistance would pave the way for a potential surge towards the $80,000 mark within the week.
However, failure to maintain momentum above $63,187 could lead to consolidation around this level throughout the week. Conversely, if bearish forces prevail and push Bitcoin below the $63,187 support level, a retest of the previous lows at $56,804 could be on the horizon.
Why Bitcoin Is Headed To $80k Or Higher
Of all the scenarios that could play out today and during the week, the bullish case for Bitcoin is strongest this week. This is because Bitcoin’s price action over the weekend has driven more positive sentiment towards the number one cryptocurrency. From the charts, it is clear that bears have lost the market. With billions of dollars in short positions around $70k, Bitcoin could be primed for a short squeeze, pushing Bitcoin to prices as high as $80k or more.
Then there are the fundamentals. Since the halving, there has been a big mismatch between Bitcoin demand and supply. The supply entering the market and available on exchanges continues to decrease even as demand grows. This means over time, the price will go up despite all the noise in the short term. Investors may be waking up to this reality, as is evident in the surging volume of Bitcoin from institutional and retail money.
Read Also: Bitcoin Price Prediction 2024 – 2040
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