Originally published on: June 05, 2024
Bitcoin made a strong push, gaining 5.9% between June 2 and 5, but it hit a roadblock at $71,746. This surge was fueled by nearly $1 billion flowing into US-based spot Bitcoin exchange-traded funds, signaling growing interest from institutional investors.
The cryptocurrency market was abuzz with optimism as key indicators like the US banking sector’s unrealized losses and a more favorable stance from US lawmakers set the stage for Bitcoin to break above $72,000. Unfortunately, regulatory uncertainty has kept financial advisers cautious about increasing their exposure to cryptocurrencies, according to Matt Hougan, Bitwise’s chief investment officer.
Despite positive signs like the SEC’s approval of spot Ether ETFs and a less hostile stance from US regulators, including recent court losses for anti-crypto disputes, Bitcoin remains tethered below the $72,000 mark. Even President Joe Biden’s veto of repealing the SAB 121 rule shows that the road to regulatory clarity for cryptocurrencies is long.
Arthur Hayes, co-founder of BitMEX, suggests that the solution might be to “print more money,” creating a favorable environment for assets like Bitcoin, which have a limited supply. Speculation is rife that Bitcoin could follow the 43% surge it experienced in March 2023, triggered by significant financial market events.
Investors are cautioned about possible price corrections ahead of a potential Bitcoin rally, just as seen in the past when uncertainty in markets led to sharp drops followed by significant gains. Traders are closely watching the performance of tech stocks like NVidia and the stock market indices for insights into Bitcoin’s future trajectory.
Although the path to a new all-time high for Bitcoin in 2024 seems clear, factors like a resilient stock market and strong performance of other assets may hinder its immediate ascent past $72,000. Investors are advised to stay informed and make decisions based on their risk tolerance and market trends.
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Disclaimer: This content is for informational purposes only and should not be construed as financial or legal advice. The opinions expressed here are solely those of the author and do not represent the views of Cointelegraph.