Key Points
- Bitcoin reached a two-week high on June 5, with analysts attributing the increase to growing institutional interest.
- Bitcoin exchange-traded funds (ETFs) in the U.S. saw net inflows of nearly $900 million on June 4, the second highest single-day tally in their five-month history.
Bitcoin experienced a surge in value, trading at two-week highs on June 5. The rise in Bitcoin’s price is believed to be linked to an increase in institutional interest.
Bitcoin’s Price Increase
Bitcoin’s price reached local highs of $71,286 on Bitstamp after the daily close. The gains were maintained during the Asia session, with focus now shifting to the Wall Street open following a “strong bid” at the start of the U.S. trading week.
Popular trader Skew analyzed the market and suggested that U.S. spot Bitcoin ETFs had contributed to the bullish momentum. These ETFs recorded net inflows of nearly $900 million on June 4, according to data from sources including UK-based investment firm Farside. This was the second-largest single-day tally in their five-month history.
Skew also mentioned that the largest global exchange, Binance, could play a crucial role in strengthening the uptrend.
Resistance and Support Levels
Trading resource Material Indicators pointed out the extent of resistance between the current spot price and all-time highs at $73,800. Bidders were placing liquidity above $69,000, a key level to flip to support, to bolster Bitcoin’s price.
On the topic of ETFs, trading firm QCP Capital saw broader bullish tailwinds for Bitcoin due to institutional investment worldwide.
QCP Capital noted that as BlackRock’s Bitcoin spot ETF becomes the fastest ETF ever to cross $20b in size, more are following suit with Thailand’s SEC approving the first Bitcoin spot ETF and Australia’s first Bitcoin spot ETF starting to trade.
QCP added that it expected U.S. unemployment data, due toward the end of the week, to boost Bitcoin even further, especially if it shows that restrictive financial policy is having a greater impact than estimated.
