Bitcoin (BTC) is experiencing a resurgence of institutional interest, with exchange-traded funds (ETFs) witnessing a surge in trading activity not seen since late March. This renewed enthusiasm is driving the price of BTC towards new May highs, raising hopes for a return to record-breaking territory.
Nearly 1,000 US Firms Invest in Bitcoin ETFs
Data from research firm Santiment reveals a significant shift in the market. Daily spot Bitcoin volumes on major US spot ETFs surpassed $5 billion, the highest since March 24th. This surge indicates a growing presence of institutional investors entering the Bitcoin market through ETFs, with nearly 1,000 US firms now holding these investment vehicles.
“Gone are the days of whales only accumulating onchain,” commented Santiment, highlighting the shift from individual investors to a more institutional landscape. This change is further supported by data showing 937 US firms holding Bitcoin ETFs in Q1, a stark contrast to the mere 95 firms drawn to gold ETFs during their launch quarter.
The sentiment surrounding Bitcoin remains positive. Spot ETFs have enjoyed consistent inflows throughout this week, further fueling the bullish narrative. Even the Grayscale Bitcoin Trust (GBTC), which previously experienced significant outflows, has seen a recent influx of interest with inflows exceeding $27 million.
Technical Analysis Suggests Bullish Continuation
Technical analysts at QCP Capital see several factors aligning to support a continued uptrend for BTC. These factors include “genuine institutional and sovereign adoption” coupled with the recent completion of Bitcoin’s halving cycle. Additionally, historical price action reveals a strong buy-the-dip mentality around the $60,000 support level.
Also Read: Bitcoin Back in Business: Analyst Predicts $100,000 Surge by Q4 2024
Calls for New All-Time Highs: Can Bitcoin Reach $95,000?
The overall sentiment leans bullish, with analysts predicting new all-time highs for BTC/USD. Some even forecast a potential surge towards $95,000. With the pair currently attempting to break resistance at $67,000, only time will tell if Bitcoin can reclaim its record-breaking glory.
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