The growing interest in Bitcoin ETFs might escalate as Bloomberg ETF expert Eric Balchunas anticipates Charles Schwab, a colossal $8.5 trillion asset manager, joining the Bitcoin ETF market with a cost-effective offering. This entry could significantly ramp up competition in the ETF sector. Though Schwab is still developing its spot Bitcoin ETF, their potential entrance is a notable development.
Crypto analyst Joe Burnett has highlighted a crucial on-chain metric: Bitcoin’s exchange balances have reduced by over a million since 2020. This reduction is particularly significant considering Bitcoin’s capped supply of 21 million. The withdrawal of one million BTC from exchanges bolsters the bullish case for the cryptocurrency.
With the Bitcoin halving event, a process that halves mining rewards from 6.25 to 3.125 BTC, only about 80 days away, expectations are high. Historically, Bitcoin’s price has surged to new highs post-halving, making this event a potential catalyst for further price increases.
Another optimistic on-chain indicator is the trend in Bitcoin wallet addresses holding less than 1 BTC. Data from Glassnode indicates these addresses have been declining since Bitcoin’s peak of $49,000 (approximately R919,240) in South Africa. However, this trend appears to be reversing, with more consolidation around the $40,000 (approximately R750,400) mark, suggesting a strengthening market.
Glassnode’s data also shows that Bitcoin’s short-term holder realized price is on an upward trajectory. This means BTC is being bought at higher prices, underpinning the asset’s uptrend and supporting the likelihood of a price recovery.
In the ETF space, Harvest Hong Kong recently applied for a Bitcoin Spot ETF with the Hong Kong Securities and Futures Commission, marking a significant step in ETF offerings.
From a technical standpoint, Bitcoin’s price has held strong above the $42,000 (approximately R787,920) level, indicating a recovery from its recent dip. BTC’s price has crossed the critical $40,000 (approximately R750,400) threshold, facing potential resistance at $43,600 (approximately R817,936) and $45,589 (approximately R855,250).
A consistent price above $40,000 strengthens the bullish outlook, with a potential rise to $45,000. However, a drop below $40,000 could challenge this optimistic view, potentially leading to a decrease towards support levels between $38,155 (approximately R712,880) and $38,555 (approximately R723,292).
This website uses cookies.
