Thursday, April 18, 2024

Wall Street Banks Enter the Crypto Market, Pushing Bitcoin Price to $50,000.

On Monday, the price of bitcoin (BTC) rose back to levels seen in late 2021; this is considered a significant milestone by the community. It satisfies the pace for what might initiate the next bull cycle in the cryptocurrency market because it occurs before the halving event.

Wall Street is making large purchases of Bitcoin.

Since the historic approval of spot BTC exchange-traded funds (ETFs) in the US on January 10, the number of bitcoin purchases has increased dramatically. According to research, Wall Street may be purchasing Bitcoin in large quantities; purchases could be up to 12.5 times greater daily than the network can generate.

Anthony Pompliano, a businessman and VC investor, claims that Bitcoin has now become Wall Street’s preferred asset. Pompliano also emphasized that Wall Street “not just likes but loves Bitcoin,” crediting the popularity of the recently introduced spot ETFs, which he claimed had broken all previous records for this kind of commodity.

Pompliano calculated that throughout the previous six months, eighty percent of all the bitcoin that is presently in circulation has not changed hands. Furthermore, the actual trading value of Bitcoin is only $200 billion. In light of this, he draws the conclusion that, in the short 30 days since the investment product was live on the market, the ETFs have succeeded in capturing 5% of the total supply of Bitcoin that is now traded.

Mexican billionaire Ricardo Salinas stated, “You have to know how to be patient, not get scared when it goes down and buy” it after reaching the $50,000 milestone.

Outlook for the price of bitcoin as spot BTC ETFs drive Wall Street crazy

The price of Bitcoin has retraced after hitting the key $50,000 mark, primarily as a result of traders taking advantage of the early gains. Additionally, it exhibits the classic correction pattern of an overpriced asset with a Relative Strength Index (RSI) value greater than 70.

However, given that the RSI is still pointing north and indicates increasing momentum, there is still room for growth in the price of bitcoin. Additionally, above its signal line (the orange band), the Moving Average Convergence Divergence (MACD) indicator is in positive territory.

With more buying pressure, the price of Bitcoin might break through the $50,000 barrier and perhaps reach the psychological $60,000 mark. This would represent a 20% increase over the present levels. However, if profit-taking spikes, the price of Bitcoin may drop even further, maybe into the supply zone that is now offering support between $44,300 and $46,760. It would be verified that the decline is still ongoing if this order block’s midline, at $45,554, were broken and closed lower.

Due to the climbing trendline, there is a chance that the price of Bitcoin may lose support and test the $41,880 level, or, in the worst-case scenario, roll over and hit $40,643.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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