• 28 May, 2024
News

2023’s Crypto Landscape: Bitcoin Hits $35,000 as Institutions Eye US BTC ETFs

In a significant development, Bitcoin’s price has surged to a notable $35,000 for the first time in 2023, marking a 19% increase over the past week. Spot trading volume has seen a staggering 187% increase, now reaching $50 billion, highlighting the bullish momentum. Additionally, the market cap has grown by 13%, currently valued at $666.5 billion. As the market displays signs of FOMO, institutional investors are capitalizing on this rally, driven by optimism surrounding a potential spot BTC ETF in the US.

According to the analytics platform, Santiment, traders are currently exhibiting signs of Fear of Missing Out (FOMO) and a pronounced level of greed keywords. However, for sustained growth, a sense of Fear, Uncertainty, and Doubt (FUD) is essential, as historically, markets rise when least anticipated.

Institutional investors are at the forefront of this rally. Their active participation is largely due to the optimism surrounding the potential approval of a spot BTC Exchange Traded Fund (ETF) in the US. This enthusiasm was particularly evident during the Asian trading hours on Tuesday, spurred by the revelation of a BlackRock ETF on the Depository Trust & Clearing Corp. (DTCC) website.

Additionally, the Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has hit a milestone of 100k BTC, as tweeted by analyst Vetle Lunde. This indicates a significant interest from institutional investors, leading to a 25% boost in CME’s market share, which might soon overtake Binance’s perpetual market.

Technically, Bitcoin’s break above an ascending triangle pattern hints at a potential rise to $45,711. However, with the Relative Strength Index (RSI) at 78.55, traders should be wary of an overbought scenario that might prompt a short-term correction. The upper Bollinger Band suggests a resistance level at 31937, while the lower band offers a support level at 28262.

Source:TradingView

The Bitcoin market’s bullish trajectory is evident, but traders should be cautious of potential short-term setbacks. The active role of institutional investors and the buzz around a spot BTC ETF are pivotal to this trend and deserve keen observation in the upcoming days.

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