Your daily dose of crypto news

Bitcoin Surges to $70K Amid ETF Buying Spike

3 min read
53da4ff8185e7b4b5f98f6b1d1edeeb8 CryptoForDay

Bitcoin Surges to $70K Amid ETF Buying Spike

Bitcoin’s price has made a significant leap to the highly anticipated $70,000 mark. This rise has been fueled by a notable increase in spot buying as well as investments in spot BTC exchange-traded funds (ETFs). As the cryptocurrency community observes these developments, there is growing speculation on whether this signals the start of a new bull market or if the market is approaching its zenith.

The recent activity in Bitcoin charts and spot ETFs underscores a potential trend reversal. According to analyst ‘ELI5 of TLDR,’ a majority of on-chain indicators suggest the emergence of a bull market even though some indicators are showing signs of peaking. The price of Bitcoin found robust support around the $60,000 level, which has rejuvenated interest. Farside Investors reported an influx of approximately $950 million last week, marking the highest since March. If this momentum continues, Bitcoin might surpass current forecasts.

Today, Bitcoin is trading just a few hundred dollars below the $70,000 threshold. The 20-day exponential moving average (EMA) stands at $64,371 with a positive relative strength index (RSI), hinting that an upward price breakout is more probable. Breaking through the $68,000 resistance indicates that Bitcoin could head towards the $73,777 level, which could attract significant bearish activity. If the price falls below the moving averages, it may signal a bearish trend, potentially lowering the price to $59,600 and $56,552.

The broader economic environment also plays a crucial role in Bitcoin’s surge. With a 51% gain year-to-date, this reflects investors’ anticipation of an expanding U.S. monetary base. In April 2024, the M2 monetary base exceeded $21.0 trillion, pointing to increasing inflationary pressures despite a phase of cautious spending by businesses and individuals. The Federal Reserve’s maneuvers to manage inflation and stave off a recession could impact overall liquidity, thereby affecting the allure of Bitcoin and other scarce assets.

Exchange Bitcoin reserves have hit their lowest level in seven years, adding to the bullish trend. Data from CryptoQuant reveals that only 1,918,417 BTC are available on major trading platforms as of May 19, marking a substantial reduction from the previous year. This scarcity, coupled with the recent halving event that reduced the new supply from miners, makes a bearish perspective on Bitcoin increasingly hard to defend.

Bitcoin’s recent price action is also driven by changing U.S. monetary policies. Investors are moving towards Bitcoin as a hedge against projected inflation and a weaker dollar. This has been amplified by the U.S. Federal Reserve’s indications of potential future monetary expansion. The greater the monetary base, the likelier the prospects of inflation, a scenario where Bitcoin, with its fixed supply, could thrive.

The decrease in available Bitcoin on exchanges means that there are fewer BTCs readily available for trading. This usually translates into upward pressure on prices as demand remains robust while supply diminishes. The recent halving event, which cuts the mining rewards and consequently the introduction of new Bitcoins, further escalates this effect, bolstering Bitcoin’s bullish prospects.

Reflecting back to analyst ‘ELI5 of TLDR’s’ observations, while some indicators suggest a peak, the majority support the idea of a beginning bull market. This contrast is crucial to consider, as it provides a balanced view of not only the current optimism but also caution for potential volatility. Investors are closely monitoring these signals to navigate potential risks and rewards in the evolving market landscape.

21 thoughts on “Bitcoin Surges to $70K Amid ETF Buying Spike

  1. Investing in Bitcoin feels more like playing with fire each day it climbs.

  2. Look at the past cycleswhenever Bitcoin hits a new high, a sharp decline isn’t far behind.

  3. Bitcoin’s potential to surpass forecasts is almost certain with these bullish indicators. Let’s go! 🥳” – Henry F.

  4. Only 1,918,417 BTC left on exchanges. HODL tight, friends, were in for a ride! Ella R.

  5. Farside Investors are making bold moves, and so am I. Bitcoin all the way! Ben E.

  6. With spot buying and ETFs fueling this rise, it’s clear that mainstream adoption is no longer a dream. Onward to $73,777! Mike B.

  7. Bull market or peak, it’s an exciting time to be in crypto. Holding strong! Mark J.

  8. Elon tweets, Bitcoin skyrockets. Next: Elon tweets, Bitcoin plummets. Not reliable!

  9. Market sentiment seems overly bullish, which usually signals a looming correction. ⚠️

  10. Making a leap to $70,000 feels like the calm before the storm. Expecting the crash any moment now.

  11. Bitcoin at $70k? I swear this is just hype-driven nonsense again. Those ETFs won’t save it.

  12. Bitcoin hitting significant support at $60k shows how strong the base is. Keep going $BTC! Ali K.

  13. Bitcoin acting as a hedge against inflation is such a win! The price trajectory is thrilling. Isabella C.

  14. Robust support around $60k and interest rejuvenated – were on the edge of another surge! Mia T.

  15. Don’t be fooled by the recent surge. This market is way too volatile for my taste.

  16. Exchange Bitcoin reserves are at a 7-year low! The scarcity can only mean one thing – UP! Sarah T.

  17. Are people really falling for this again? Bitcoin isn’t a safe investment, it’s a gamble. 🎲

  18. Breaking through resistance levels like a boss, Bitcoin is incredible! To the moon! Hannah P.

  19. Bitcoins price action is too unpredictable, especially with economic conditions in flux.

  20. With inflation looming, Bitcoin is a fantastic hedge. Loving these price movements! 📈💵” – Lisa M.

Leave a Reply

Copyright © All rights reserved.