Key Points
- Bitcoin (BTC) price rises to $68,630 after Wall Street open, despite US inflation signals.
- BlackRock's addition of major US banks to its Bitcoin ETF is driving renewed interest in Bitcoin.
Bitcoin's Resilience Amid US Inflation Signals
On April 5, Bitcoin (BTC) demonstrated resilience against US inflation signals. This happened as a result of renewed interest in future institutional investment.
After the Wall Street open, the Bitcoin price rose to $68,630. The cryptocurrency is currently hovering around $68,000.
BlackRock's Bitcoin ETF Attracts Major Banks
The surge in Bitcoin's value coincided with news of BlackRock, the world's largest asset manager, adding major US banks to its Bitcoin exchange-traded fund (ETF). Goldman Sachs, Citadel, UBS, and Citigroup were among the banks listed in a shared online filing.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, commented that big firms are now keen to get involved or are okay with being publicly linked with Bitcoin. He suggested that this development is likely due to the "mega-flows/success" of the ETFs.
As of April 4, nine new products held over 500,000 BTC, not including assets in the newly-converted ETF, the Grayscale Bitcoin Trust (GBTC).
The BlackRock narrative helped shield Bitcoin's price action from the impact of the latest US inflation signals. These signals were in the form of above-expected employment data, indicating that the Federal Reserve could maintain higher interest rates for longer.
Data from CME Group’s FedWatch Tool showed the odds of a rate cut in 2024 being pushed back further toward the end of the year. The chances of a June cut were just over 50% at the time of writing, down 10% from earlier in the week.
Bitcoin Market Analysis
Popular trader Daan Crypto Trades observed sell-side liquidity being taken around the open. CoinGlass, a monitoring resource, showed significant sellers lined up beyond $69,000 — still the focal point of current price action.
Trader Jelle noted that if Bitcoin breaks $69,000, "all bets are off". He pointed out that Bitcoin had succeeded in forming a higher low on hourly timeframes, potentially setting the pair up for upside continuation.
