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August 9, 2022
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Growing institutional demand sees Bitcoin eyeing $ 70,000

Will Bitcoin reach the 70,000 mark later this year?

The buying pressure of BTC is finally being represented by the real price after it has gone through a period of consolidation for about a month. Bitcoin appears to be exceeding the crucial resistance level of $ 60,000, which would make it capable of climbing up to $ 70,000.

Plenty of advertising around BTC

Bloomberg provided a report on the subject in general, stating that Tesla’s decision to place part of its wealth in Bitcoin was a “tipping point” for the world’s largest cryptocurrency. As it stands now, the general narrative for cryptocurrency has changed, to one focused on FOMO about the asset potentially becoming a global reference.

As proof of this, Bitcoin saw its demand increase to new highs, with all institutions from the United States to China falling on top of each other to grab a piece of the world’s largest cryptocurrency.

Bitcoin being accumulated like gold

Meitu, a technology company based in China, acquired about 175 bitcoins in the previous week. This amounts to an aggregate value of approximately $ 10 million. Microstrategy also made big headlines, with the business analytics firm managing to pull 253 bitcoins for itself at an average price of $ 59,339.

Grayscale also managed to buy another $ 1 billion in cryptocurrencies, predominantly Bitcoin. Therefore, Grayscale boasts a total of $ 46.1 billion in assets under management.

Another important factor to consider is the derivatives market generated from Bitcoin. As the asset gradually grows and matures in the spot markets, its counterpart in the derivatives markets has also seen an increase in interest.

JPMorgan also made a public statement on the matter, praising the overall “wealth” of Bitcoin futures. The CME BTC contract was particularly noteworthy, showing that it offers a 25% annualized slide in relation to the spot price. This could be even greater on unrelated exchanges, according to JPMorgan, reaching up to 40% in value.

The U.S.-based investment bank has maintained its argument regarding Bitcoin and that the growing demand for the asset, as well as for other products derived from it, is an ideal breeding ground for the launch of a Bitcoin-based ETF in the United States. According to the banking giant, this ETF product could create large amounts of new demand for the asset class, significantly reducing entry barriers.

Source: Inside bitcoins

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