Bitcoin (BTC) has made a strong comeback, surpassing the $70,000 mark with a 10% surge in the past week. Analysts at Goldman Sachs predict that the bank’s hedge fund clients are gearing up to enter the crypto market.
Over the last three months, the cryptocurrency market has experienced a significant uptick, resulting in Bitcoin reaching a new all-time high of nearly $75,000. However, there was a preceding drop that caused the world’s largest cryptocurrency to breach the $70,000 support at the beginning of the month.
As of now, Bitcoin has climbed back above $70,300 after a 9% surge in the past week, setting the stage for a historically bullish April.
The recent price increase can be attributed to growing institutional interest, which is drawn to the asset not only because of the rising prices that typically trigger fear of missing out (FOMO), but also due to the introduction of exchange-traded funds (ETFs), which provide easy access to digital assets.
Data suggests that institutional investors have invested around $86 billion into Bitcoin. This influx of funds has not only fueled the short-term upward trend but also indicates a long-term bullish trend, as institutional investors are known for their preference for low volatility. This is in contrast to retail investors, who are more susceptible to FOMO and panic selling.
Goldman Sachs Group predicts that pension funds may sell approximately $32 billion in stocks by the end of the quarter to rebalance their portfolios. Analysts anticipate strong interest in Bitcoin ETFs, as they were only recently listed in January, giving funds insufficient time to acquire them. This could result in a significant influx of investment next week.
Furthermore, Bitcoin advocate Willy Woo suggests that a portion of the $9.5 trillion in assets managed by BlackRock will find its way into Bitcoin and other cryptocurrencies. Additionally, the upcoming halving event, which historically leads to all-time highs, is expected to further drive investment.
While Bitcoin garners much attention, experts predict that investment will also flow into other cryptocurrencies. However, the catalyst for this, ETF launches, has not yet materialized. The proposed Ethereum ETFs are still under consideration by the U.S. Securities and Exchange Commission (SEC), and opinions on the likelihood of approval or denial of the filings are divided among ETF experts. One potential obstacle to approval is the SEC’s investigation into the Ethereum Foundation, as well as its consideration of classifying ETH as a security.
Despite regulatory uncertainties and the SEC’s cautious stance, BlackRock CEO Larry Fink remains confident in the feasibility of an Ethereum ETF, even if Ether is designated as a security. He stated that market optimism for Ethereum ETFs remains high.
At present, ETH is trading at $3,600 after a 7% increase in the past week. The leading alternative cryptocurrency continues to exhibit remarkable stability despite recent developments, which is promising for investors who anticipate a rally to the all-time high of $4,800 in the current bull market.
XRP is also poised for a rally, with speculation within the community suggesting that a settlement between Ripple and the SEC may be imminent. If this occurs, it could propel XRP to reach a new record high.