(TrendHub KR – Posts by ICARUS Journalist)Bitcoin (BTC) price has recently surpassed the highest level since January 12th, reaching above $44,000. As the world’s leading cryptocurrency by market capitalization, Bitcoin appears to be riding the wave of bullish momentum seen in US equities. The S&P 500 index nearly touched the 5,000 mark for the first time, marking a close to 1% increase on the day, attributed to a stronger-than-anticipated earnings season. This buoyant atmosphere in the equity market is likely lending support to Bitcoin’s price. Despite some fluctuations over the years, Bitcoin’s price has generally shown a positive correlation with movements in the US equity market.

The anticipation of more accommodative financial conditions later this year is also playing a role in bolstering US stocks and, by extension, the Bitcoin price. While Federal Reserve policymakers have indicated no hurry to lower interest rates, there have been discussions about potential rate cuts later in 2024.

Bitcoin Price Gains from Additional Tailwinds

Currently, Bitcoin’s price is benefiting from a couple of significant tailwinds. A major index of US regional bank stocks has seen an 11% decline over the last month, reigniting concerns over a banking crisis. These fears were sparked last week following a disappointing earnings release from New York Community Bancorp, leading to a downgrade by Moody’s. Crypto traders might recall the surge in Bitcoin price from under $20,000 to nearly $30,000 in just 14 days in March 2023, driven by safe-haven demand amidst fears of a widespread collapse of US regional banks.

Prominent figures in the crypto market, such as Arthur Hayes, have suggested that a US banking crisis could reemerge in March. This is attributed to the expiry of a key Federal Reserve liquidity program that previously rescued several regional banks last March, potentially propelling Bitcoin price to $1 million, according to Hayes.

Moreover, as safe-haven flows begin to increase, net inflows into spot Bitcoin ETFs are providing another major boost to Bitcoin’s price. According to ETF.com data, outflows from Grayscale’s Bitcoin Trust (GBTC) continue to decline. On Tuesday, the recently converted ETF experienced its lowest daily outflow yet at $100 million. This was overshadowed by inflows into BlackRock’s newly launched ETF, which saw $137 million in inflows on the same day. Additionally, Fidelity’s spot Bitcoin ETF reported inflows of around $40 million on Tuesday. These two ETFs have attracted nearly $6 billion in inflows since their launch less than a month ago, effectively neutralizing the nearly $6 billion in outflows that GBTC has experienced. Not to mention, the other 8 newly launched spot Bitcoin ETFs have also witnessed significant demand.

With most of the selling pressure on GBTC seemingly behind us, net ETF inflows are expected to continue providing a tailwind for Bitcoin’s price.

What’s Next for BTC?

With Bitcoin now above the $44,000 short-term resistance and its major moving averages, the bulls seem to have regained control. The strong rebound from the 100-day moving average (DMA) and the support level in the $38,000s in January suggests a short-term bottom may have been formed. Assuming ETF inflows remain positive and the market avoids a hawkish reevaluation of Federal Reserve rate cut expectations, the Bitcoin price is poised to revisit its 2024 highs at $49,000 in the near future.

Given the looming bank crisis and the fast-approaching halving event, Bitcoin’s price could soon breach the $50,000 mark.

Dual Insight Analysis:

Positive Investment Perspective:

The recent surge in Bitcoin’s price presents a significant opportunity for investors. The positive correlation with the US stock market, increased demand for safe havens, and net inflows into ETFs all serve as factors that could elevate Bitcoin’s value. The banking crisis concerns and expectations for a more accommodating monetary policy by the Federal Reserve may position Bitcoin as an attractive investment alternative. Investors can leverage these market trends to strengthen their position in Bitcoin within a diversified portfolio.

Negative Investment Perspective

However, the high volatility and uncertain financial market environment increase the risks associated with investing in Bitcoin. Macroeconomic factors such as a banking crisis can drive short-term price increases in Bitcoin but raise questions about its long-term stability and growth prospects. Investors should exercise caution against excessive optimism and thoroughly evaluate market trends and potential risks before making Bitcoin investment decisions.

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Disclaimer: This article is written solely for informational purposes and should not be interpreted as investment advice or financial consulting in any form. TrendHub News does not bear legal responsibility for the content of the article. While the information provided is based on reliable sources, market conditions are subject to change. All investment decisions should be made under the investor’s own responsibility, and this article should not be the sole basis for any investment decision. It is recommended to consult with a professional before making any significant investment decisions.

<p>The post Bitcoin Price Soars Above $44,000 as Bulls Take Charge – What’s Next for BTC? first appeared on TrendHub.</p>

(TrendHub KR – Posts by ICARUS Journalist) The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has delayed its decision on a proposed spot ether (ETH) exchange-traded fund (ETF), a joint venture between Invesco and Galaxy Digital. This postponement aligns with the expectations of analysts, notably James Seyffart from Bloomberg Intelligence, who commented that the delay was “100% expected,” and anticipates further delays in the coming months. Seyffart highlighted that, currently, the only significant date for spot Ethereum ETFs is May 23, marking VanEck’s final deadline.

The proposed ETF aims to provide professional investors with direct exposure to spot ether. Presently, ether futures listed on the Chicago Mercantile Exchange (CME) are among the few avenues available for regulated U.S. investors and funds to invest in Ethereum’s growth.

This postponement follows the SEC’s previous delays in January regarding Grayscale Investments’ application to convert its Ethereum trust product (ETHE) into an ETF and a decision on BlackRock’s application for an ether ETF. Despite these successive delays, financial giants are optimistic, expecting ether’s price to surge by as much as 70% in the coming months in anticipation of ETF approvals in May.

“Leading up to the anticipated approval date on May 23, we expect ETH prices to either track or outperform bitcoin (BTC) during the corresponding period,” stated a note from Standard Chartered Bank in January.

According to data, ETH has emerged as the top gainer among major cryptocurrencies over the past 24 hours, with a 2.2% increase.

Dual Insight Analysis

Positive Perspective:

The SEC’s delays in deciding on Ethereum ETFs could present a greater opportunity for investors in the long run. Approval of ETFs would enhance the legitimacy and confidence in Ethereum and the broader cryptocurrency market, offering greater accessibility to institutional investors. This could lead to an expected rise in Ethereum prices, potentially benefiting long-term investors.

Negative Perspective:

On the other hand, the SEC’s continuous postponements add uncertainty to the market and may create unease among investors. This could lead to increased market volatility in the short term and prompt investors to seek alternative assets. Additionally, delays in ETF approvals may cause investors to doubt the long-term value of Ethereum, potentially negatively impacting its price.

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Disclaimer: This article is written solely for informational purposes and should not be interpreted as investment advice or financial consulting in any form. TrendHub News does not bear legal responsibility for the content of the article. While the information provided is based on reliable sources, market conditions are subject to change. All investment decisions should be made under the investor’s own responsibility, and this article should not be the sole basis for any investment decision. It is recommended to consult with a professional before making any significant investment decisions.

<p>The post SEC Postpones Decision on Another Ethereum ETF Application: Between Analyst Expectations and Investor Anticipation first appeared on TrendHub.</p>