Key Points
- Bitcoin (BTC) price surged over 4% to briefly hit $66K, before settling around $65K.
- Increased demand from institutional investors has fueled Bitcoin’s recent price rally.
Bitcoin’s price saw a significant increase of over 4% within a 24-hour window, briefly reaching a high of $66K. The price later stabilized around $65K. This surge allowed Bitcoin to regain key support levels, potentially setting the stage for further bullish momentum in the upcoming weeks.
In the past few days, Bitcoin’s price closed above the 50 and 200 Moving Averages (MA) on the daily time frame. This closure above the crucial support range between $60K and $62K suggests that Bitcoin could be looking to retest its all-time high soon.
Demand from Institutional Investors
The recent rebound in Bitcoin’s price can be attributed to increased demand from institutional investors. Notably, the German government completed its sale of $2 billion worth of Bitcoin over the weekend.
The repayment of the Mt. Gox crypto scandal has also turned into a significant event. As of Wednesday, Mt.Gox, through the Kraken exchange, had repaid 13K of the creditors, representing 65% of the victims.
US-based spot Bitcoin ETFs registered approximately $422 million in cash inflows on Tuesday. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC led with a net cash inflow of around $260 million and $61 million, respectively. Notably, none of the US-based spot Bitcoin ETF issuers reported a net cash outflow on Tuesday.
Future Outlook
The crypto industry is expected to see a bullish outlook in the near future. This is partly due to the United States SEC’s preliminary approval of three spot Ether ETFs to trade by Tuesday. The bullish outlook is further supported by the anticipated interest rate cut in the United States amid the upcoming general election.
From a technical perspective, Bitcoin’s price has been moving within a rising channel over the past two weeks. According to crypto analyst Ali Martinez, Bitcoin’s price needs to consistently close above $65k to ensure a bullish momentum towards $67k, a crucial support/resistance level.