Key Points
- Bitcoin’s price is struggling to maintain a support level above $67,000 despite increased trading volumes on spot BTC ETFs.
- Despite the rise in Bitcoin’s price and the approval of several spot BTC ETFs, Goldman Sachs’ clients remain uninterested in cryptocurrencies.
Despite a surge in trading volumes on spot Bitcoin ETFs, the price of Bitcoin (BTC) is having a hard time maintaining a support level above $67,000 due to increased selling pressure.
On Tuesday, ARK 21Shares Bitcoin ETF (ARKB) saw an outflow of $88 million, surpassing Grayscale’s GBTC which recorded $82 million. Additionally, the US government deposited over 30k Bitcoins, obtained from the Silk Road marketplace, into Coinbase Global Inc. (NASDAQ: COIN).
Institutional Interest and Short Positions
Despite the upcoming Bitcoin halving in less than three weeks, institutional interest in the cryptocurrency space remains high. Furthermore, the number of leveraged short positions in CME Bitcoin futures has reached a record high of 19,917 contracts as of March 19, according to the CFTC. The total open interest on CME Bitcoin futures is over 33,196 contracts, equating to approximately $10.5 billion.
Goldman Sachs’ Clients and Cryptocurrencies
A report by the WSJ reveals that clients of Goldman Sachs Group Inc (NYSE: GS) are currently not interested in Bitcoin. Despite the significant increase in Bitcoin’s price following the approval of several spot BTC ETFs by the United States Securities and Exchange Commission (SEC), Sharmin Mossavar-Rahmani, the Chief Investment Officer at the Wealth Management Unit of Goldman Sachs, stated that the bank’s clients have shown no interest in cryptocurrencies.
Sharmin criticized the cryptocurrency industry for its supposed hypocrisy regarding the democratization of finance, as a few individuals make decisions for the majority. Consequently, Goldman Sachs’ clients will continue to observe from the sidelines, even though the crypto bull market has already been confirmed.
At present, Goldman Sachs’ clients are invested in traditional asset classes such as the Goldman Sachs Physical Gold ETF (Cboe BZX: AAAU) which has net assets of $649 million as of April 2, 2024. Interestingly, the price of gold has continued to outperform Bitcoin, reaching a new all-time high (ATH) above $2,278 in recent days.
Bitcoin Price Outlook
In the four-hour time frame chart, Bitcoin’s price against the US dollar has been forming a bullish pennant, usually followed by a significant increase. However, for this bullish momentum to continue, Bitcoin’s price needs to reclaim the support level above $70,000 in the near term.
If not, the price of Bitcoin could drop to as low as $60k in the coming weeks as the bulls attempt to regain control.
