Bitcoin (BTC) has made a strong comeback, surging above $70,000 in the past week. Analysts from Goldman Sachs are predicting that the banking giant’s hedge fund clients are preparing to enter the cryptocurrency market.
The crypto market has experienced significant growth over the last three months, resulting in Bitcoin reaching a new all-time high of nearly $75,000. However, there was a drop in the beginning of the month that caused the world’s largest cryptocurrency to fall below the $70,000 support level.
As of now, Bitcoin has surpassed $70,300 after a 9% increase in the past week. This sets the stage for a historically bullish April.
The recent price surge can be attributed to growing institutional interest. Institutional investors are not only attracted to Bitcoin due to its rising prices, which often trigger fear of missing out (FOMO), but also because of the introduction of exchange-traded funds (ETFs) that provide easy access to the digital asset.
Data shows that institutional investors have invested around $86 billion into Bitcoin. This influx of capital has not only fueled the short-term bullish trend but also indicates a long-term bullish trend, as institutional investors are known for their preference for less volatility compared to retail investors who are more prone to FOMO and panic selling.
Goldman Sachs Group predicts that pension funds could sell approximately $32 billion in stocks by the end of the quarter to rebalance their portfolios. Analysts anticipate strong interest in Bitcoin ETFs due to their recent listing in January, which has not given funds enough time to acquire them. This could result in a significant influx of investment in the coming week.
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 is historically considered one of the most bullish events that can lead to a new all-time high.
While Bitcoin receives much attention, experts predict that investment will also flow into other cryptocurrencies. However, the catalyst for this, ETF launches, has been absent. The proposed Ethereum ETFs are still under consideration by the U.S. Securities and Exchange Commission (SEC), with experts divided on the likelihood of approval or denial. The SEC’s investigation into the Ethereum Foundation and the potential classification of ETH as a security could hinder the approval process.
Despite these uncertainties, BlackRock CEO Larry Fink remains confident in the feasibility of an Ethereum ETF, even if Ether is designated as a security. Fink believes that market optimism for Ethereum ETFs remains high.
At the moment, ETH is trading at $3,600 after a 7% increase in the past week. The second-largest cryptocurrency continues to show stability despite recent developments, which is encouraging for investors who anticipate a rally to the all-time high of $4,800 in the ongoing bull market.
XRP is also expected to rally, with speculation within the community suggesting a potential settlement between Ripple and the SEC. If a settlement is reached, it could propel XRP to new heights.
In conclusion, Bitcoin has made a strong recovery, attracting institutional investors and setting the stage for a bullish April. Other cryptocurrencies, such as Ethereum and XRP, are also expected to benefit from increased investment and positive developments.