• Tue. Jun 25th, 2024

BTC’s Price Could Surge to $74,000 as Institutional Interest Grows

Steve Kornacki

BySteve Kornacki

May 16, 2024
BTC's Price Could Surge to $74,000 as Institutional Interest Grows - Analysis

Spike in Institutional Interest And BTC’s Price Surge

BTC traders are gearing up for a surge in the cryptocurrency’s price, with many expecting it to reach as high as $74,000 in the coming weeks. This optimistic outlook stems from a combination of factors, including softer-than-expected US inflation figures and increasing institutional demand for the leading digital asset.

Institutional investors such as Millennium and Schonfeld have recently invested significantly in spot BTC exchange-traded funds (ETFs), indicating a growing appetite for cryptocurrencies among traditional financial players. These investments, amounting to approximately 3% and 2% of their assets under management (AUM), respectively, underscore their increasing acceptance of Bitcoin as a legitimate asset class.

Market Dynamics Signal Positive Momentum

Furthermore, on-chain analysts have noted decreased selling pressure from short-term Bitcoin holders, indicating a more favorable market environment for price appreciation. Data from CryptoQuant suggests that short-term holders, defined as addresses holding Bitcoin for less than 155 days, are selling at minimal profits, while fewer traders are depleting their unrealized profits accumulated over the past few months.

The recent breakout in Bitcoin’s price followed a period of relatively low volatility, during which the cryptocurrency traded within a range of $60,000 to $70,000 since March. Despite the anticipation surrounding the halving event in April, which typically catalyzes price increases, the market remained subdued.

However, the recent resurgence in bullish momentum can be attributed to the 0.3% rise in CPI compared to economists’ forecasts of 0.4%, triggering a sharp surge in Bitcoin’s price and prompting investors’ renewed interest in riskier assets. Nevertheless, market conditions can change rapidly, and unforeseen events or regulatory developments could impact prices.

In addition to institutional interest, retail investors contribute to the market’s momentum with renewed enthusiasm for token bets and meme coins. 

CME Group Considers Bitcoin Trading 

As institutional interest in cryptocurrencies continues to surge, the world’s largest futures exchange, CME Group, is reportedly discussing launching Bitcoin trading services. Sources familiar with the matter revealed that CME is considering this move to capitalize on the surging interest in cryptocurrencies, particularly BTC.

This initiative’s timing follows the approval by the US Securities and Exchange Commission (SEC) to list spot Bitcoin exchange-traded funds (ETFs) on CME alongside its existing crypto futures products. The US regulator also approved this listing on all registered national exchanges in the US, including the NYSE, NASDAQ, and CBOE.

Should CME proceed with its plans, its spot trading business will likely operate through Switzerland’s EBS currency trading platform. The choice of Switzerland stems from its reputation for robust regulations governing the trading and storage of cryptocurrencies, providing a secure and compliant environment for institutional investors to engage in BTC trading.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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