- May 18, 2024
- Posted by: [email protected]
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Bitcoin (BTC) has maintained its momentum above $66,000, reaching an intra-day high of $66,500. The current Bitcoin price prediction points to strong bullish momentum, largely driven by increasing institutional interest. BlackRock’s iShares Bitcoin Trust (IBIT) has been a significant catalyst, attracting substantial investments. Additionally, CME Group’s planned entry into Bitcoin spot trading is expected to boost market liquidity and demand.
Since its launch, BlackRock’s iShares Bitcoin Trust has garnered considerable attention, reporting 414 individual or institutional investors in its initial months—an impressive feat compared to typical new investments. IBIT has rapidly grown, managing $16.65 billion in assets, making it the most popular Bitcoin investment for regular investors. Prominent firms like Millennium Management, Schonfeld Strategic Advisors, and Aristeia Capital have invested in IBIT, underscoring the strong institutional interest that is positively impacting Bitcoin’s price.
CME Group, a major Chicago-based futures exchange, plans to enter Bitcoin spot trading due to increasing demand, as noted by the Financial Times. While the exact launch date is still under wraps, CME’s history in the crypto market includes introducing Bitcoin futures in December 2017 and micro-Bitcoin futures in May 2021. Currently, CME leads in Bitcoin futures open interest with $9 billion and launched Bitcoin options in early 2020. The demand for spot trading has surged, particularly with the introduction of several spot ETFs earlier this year, which saw $303 million in inflows recently. CME’s entry into Bitcoin spot trading is expected to further boost Bitcoin’s price by enhancing liquidity and institutional participation.
Bitwise Chief Investment Officer Matt Hougan is optimistic about spot Bitcoin ETFs, driven by rising institutional investments. Recent data shows over 900 professional firms now invest in Bitcoin ETFs, collectively holding $3.5 billion. Despite this growth, professional investors currently hold only 7–10% of total Bitcoin ETF assets under management (AUM), suggesting significant potential for further expansion. Hougan anticipates that institutions will increase their allocations, driving further growth in Bitcoin ETFs and market participation.
As for Bitcoin’s price prediction, after surpassing $66,600, a potential retracement could occur. Bitcoin has completed a 38.2% Fibonacci retracement at around $64,750, now acting as significant support and today’s pivot point. Staying above this level could lead to a bullish rebound, with immediate resistance at $66,600. If Bitcoin breaks above this, the next resistance levels to watch are $67,820 and $69,000. On the downside, falling below the $64,750 support could see Bitcoin drop to $63,300, with the 50-day Exponential Moving Average (EMA) providing additional support around $63,150. Should selling pressure increase, further support levels are expected at $61,500 and $61,200. The Relative Strength Index (RSI), currently around 62, indicates continued bullish momentum.
