Bitcoin (BTC) disregarded signals of inflation in the United States on April 5 as excitement grew over potential institutional investment in the future.
After the Wall Street open, BTC/USD reached $68,630 with renewed support for the Bitcoin price. Currently hovering around $68,000, Bitcoin seemed to rise in response to news that BlackRock, the largest asset manager in the world, had included major U.S. banks as participants in its spot Bitcoin exchange-traded fund (ETF). The filing, shared online, listed Goldman Sachs, Citadel, UBS, and Citigroup.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, commented on this development, stating, “Takeaway: big-time firms now want a piece of the action and/or are now OK being publicly associated with this.” Balchunas suggested that these developments were likely due to the success of the ETFs.
As reported by Cointelegraph, the nine new products had over 500,000 BTC collectively as of April 4, not including assets in the newly converted ETF, the Grayscale Bitcoin Trust (GBTC).
The BlackRock news helped protect the BTC price from the latest signals of inflation in the United States. The data indicated that the Federal Reserve would have more leeway to keep interest rates higher for a longer period due to better-than-expected employment figures. The latest data from CME Group’s FedWatch Tool showed that the odds of a rate cut in 2024 had been pushed back further towards the end of the year. At the time of writing, the chances of a June rate cut were just over 50%, down 10% from earlier in the week.
Analyzing the market setup, trader Daan Crypto Trades noted that sell-side liquidity was being consumed at the market open. Further data from CoinGlass, a monitoring resource, showed significant sellers beyond $69,000, which is still the focal point of the current price action.
Fellow trader Jelle added that if the BTC price breaks $69,000, “all bets are off.” Jelle also mentioned that BTC/USD had successfully formed a higher low on hourly timeframes, potentially setting the pair up for further upside movement.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.