Bitcoin (BTC) remained unaffected by the signals of inflation in the United States on April 5, as excitement grew over the prospect of future institutional investment.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin maintained its price support, reaching $68,630 after the Wall Street market opened. Currently hovering around $68,000, Bitcoin seemed to gain momentum following news that BlackRock, the world’s largest asset manager, had included major U.S. banks as participants in its spot Bitcoin exchange-traded fund (ETF). The names of the banks listed in an online filing included Goldman Sachs, Citadel, UBS, and Citigroup.
According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, these developments indicate that big-time firms are now interested in being associated with Bitcoin publicly. Balchunas also suggested that this shift is likely a result of the success and high flows of the ETFs.
As previously reported by Cointelegraph, the nine new ETF products collectively held over 500,000 BTC as of April 4, excluding assets in the newly-converted Grayscale Bitcoin Trust (GBTC) ETF.
The involvement of BlackRock protected the price of BTC from the recent signals of inflation in the U.S. The latest employment data indicated that the Federal Reserve will have more flexibility to maintain higher interest rates for a longer period. The latest data from CME Group’s FedWatch Tool showed that the odds of a rate cut in 2024 have been pushed further towards the end of the year. At the time of writing, the chances of a rate cut in June were slightly over 50%, down 10% from earlier in the week.
Fed target rate probabilities. Source: CME Group
If the BTC price breaks $69,000, the situation could change dramatically. Daan Crypto Trades, a popular trader, noted that sell-side liquidity was being absorbed at the market open. Additional data from CoinGlass, a monitoring resource, revealed significant sellers positioned beyond $69,000, which remains the focal point of the current price action.
BTC liquidation heatmap (screenshot). Source: CoinGlass
Jelle, another trader, added that if the BTC/USD pair breaks $69,000, all predictions and expectations will be invalidated. Jelle also observed that BTC/USD had formed a higher low on hourly timeframes, which could potentially lead to further upside movement.
BTC/USD chart. Source: Jelle/X
This article is not intended as investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.