Bitcoin (BTC) has once again gained momentum, surging above $70,000 following a 10% increase in the past week. Analysts at Goldman Sachs are making a bold prediction, stating that their hedge fund clients are preparing to enter the cryptocurrency market. The crypto market has experienced a remarkable upward trend in the last three months, resulting in Bitcoin reaching a new all-time high of nearly $75,000. However, before this surge, the cryptocurrency experienced a drop that caused it to break the $70,000 support at the beginning of the month.
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 for the asset. The recent price surge can be attributed to growing institutional interest. Institutional investors are not only attracted to the asset due to rising prices that often trigger fear of missing out (FOMO), but also because of the launch of exchange-traded funds (ETFs), which provide easy access to the digital asset.
Data suggests that institutional investors have invested around $86 billion in Bitcoin. This influx of institutional funding has not only fueled the short-term bullish trend but also indicates a long-term bullish trend, as institutional investors are known for their stability and lack of volatility compared 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 holdings. 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 inflow 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, which is historically considered one of the most bullish events leading to an all-time high, further supports the positive outlook for Bitcoin.
While Bitcoin receives much of the attention, experts believe that investment will also flow into other cryptocurrencies. However, the catalyst for this, ETF launches, is still missing. Ethereum ETFs are currently under consideration by the U.S. Securities and Exchange Commission (SEC), with experts divided on the likelihood of approval. One potential obstacle to approval is the recent revelation that the SEC may be investigating the Ethereum Foundation and considering classifying Ethereum (ETH) as a security.
Despite regulatory uncertainties, BlackRock CEO Larry Fink expresses confidence in the feasibility of an Ethereum ETF, even if Ether is deemed a security. He states 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 second-largest cryptocurrency continues to display remarkable stability despite recent developments, which is encouraging for investors who anticipate a rally to the all-time high of $4,800 during the ongoing bull market.
XRP is also gearing up for a rally, with the community speculating that a settlement with the SEC may be imminent. If a settlement is reached, it could propel XRP to a record-breaking rally.
In conclusion, Bitcoin’s resurgence and the anticipation of institutional investors entering the crypto market have set the stage for a bullish April. Other cryptocurrencies, such as Ethereum and XRP, are also expected to experience positive developments and potential price rallies.