On Friday (May 3), Bitcoin rebounded to $59,900, trying to break through the $60,000 mark again. Wall Street asset management giant BlackRock hinted that U.S. sovereign funds and pension funds will enter the Bitcoin ETF in the coming months, which means that a new wave of investors may flock to the Bitcoin spot ETF field.
Robert Mitchnick, head of digital assets at BlackRock, said on the news site that they expect a new wave of inflows from "different types of investors." This statement comes after a period of significant stagnation in capital inflows into Bitcoin spot ETFs.
Specifically, new players could include financial institutions such as sovereign wealth funds, pension funds and endowments, Michnik said, adding that if these categories of investors began trading spot ETFs, it would mean a "restart of the discussion around Bitcoin."
In addition, Michnik revealed that BlackRock has been in talks with different types of institutions, including "pensions, endowments, sovereign wealth funds, insurance companies, other asset managers and family offices" about Bitcoin.
Separately, the SEC filling report showed that BNP Paribas, Europe’s second-largest bank (by assets), purchased shares of the BlackRock Bitcoin Spot ETF (IBIT).
BNP Paribas has a small investment in IBIT, investing in 1,030 shares of IBIT at $40.47 per share, for a total of $41,684.10, in the first quarter of 2024. At current prices, this is less than the value of a single Bitcoin. Nonetheless, it is still significant because it is one of the first confirmed examples of a large financial institution buying shares of a Bitcoin spot ETF.
In addition to the Wall Street Bitcoin spot ETF, there was major news about the situation in the Middle East. The Israeli air strike on Damascus injured 8 people, stimulating increased risk aversion sentiment, but suppressing the cryptocurrency market which is currently linked to risky assets.
Separately, U.S. Senator Elizabeth Warren, one of cryptocurrency’s most prominent critics, warned senior military and financial officials that Iran relies on cryptocurrency mining as a source of revenue that could ease the pressure of U.S. sanctions.
Warren and Senator Angus King wrote to Defense Secretary Austin, Treasury Secretary Janet Yellen and National Security Advisor Jake Sullivan, asking authorities to explain what is being done about Iran's "increasingly lucrative" relationship with cryptocurrency mining, stressing that it "poses a direct threat to U.S. national security."
Bitcoin Technical Analysis
Lockridge Okoth of FXStreet said that Bitcoin price has a bearish trend, with lower highs since early April.
With liquidity pools between $60,600 and $59,005 acting as support, Bitcoin could recover. Traders looking to initiate new long positions in Bitcoin should probably wait for a candlestick close above the $59,200 threshold.
Currently, the market still favors the bears.
First, the relative strength index (RSI) has plunged, indicating downward momentum, with its lower highs suggesting that bearish sentiment is intensifying.
The U.S. Dollar Index also maintained a countercurrent directional bias against Bitcoin price, adding credence to the bearish sentiment.
The increase in seller momentum was enough to send Bitcoin to a new low below Wednesday’s bottom of $56,552, potentially sending prices all the way down to the $50,000 range before a possible correction.
Conversely, the RSI continues to trade well above its 50 average level and its accompanying Momentum Oscillator (AO) remains in positive territory, which is a good sign. This suggests that buyers remain motivated despite the vertical movement in the market. If the RSI rebounds above its average level and goes on to make two higher highs, it would indicate a shift in sentiment in favor of the bulls.
Welcome to join us - please see the homepage for how to plan, what varieties to plan, and how to maximize profits.
