Key Points
- Bitcoin (BTC) is approaching all-time highs of $69,000 and $73,800.
- U.S. economic policy and unemployment data could influence the bullish trend.
Bitcoin (BTC) is starting the week strong, with a return to the $67,000 mark.
The cryptocurrency is inching closer to a rematch with its all-time highs of $69,000 and $73,800.
Market Factors
The question of whether Bitcoin will reach these heights in the coming days is on the minds of many market participants.
Various factors, including cues from U.S. economic policy and unemployment data, could contribute to the bullish trend.
Traders are becoming increasingly confident that Bitcoin has hit a local bottom and that the next move, after two months of consolidation, will be upward.
Bitcoin’s Performance
Bitcoin is performing well this week, returning to near $67,000.
According to CoinGlass, the bulk of immediate overhead resistance lies just below $68,000.
Market participants are in a positive mood, with one trader noting the beauty of Bitcoin’s weekly close.
However, not everyone shares this optimistic view.
Some believe that $60,000 or even lower should come next for Bitcoin.
U.S. Economic Data and Bitcoin
The macro landscape this week is not dominated by U.S. economic reports.
Instead, the focus is on the Federal Reserve and its upcoming speaking appearances.
Markets will be watching closely for cues on future policy.
The minutes from the May meeting of the Federal Open Market Committee are due for release on May 22.
Following this, U.S. jobless claims could provide another bout of volatility for risk assets.
Bitcoin ETFs and Exchange Reserves
Bitcoin exchange-traded funds (ETFs) could be making a strong comeback.
After struggling for weeks since Bitcoin’s all-time highs in March, the ETF products are seeing renewed interest.
In fact, last week, inflows hit almost $1 billion, the best weekly performance since that time.
The U.S. spot ETFs alone now hold approximately 2.8% of the total BTC supply.
In terms of demand for Bitcoin, few statistics tell a more bullish story than exchange BTC reserves.
New data puts the amount of Bitcoin available for purchase on major trading platforms at the lowest since 2017.
Market Sentiment
The Crypto Fear & Greed Index, which determines the sustainability of overall crypto sentiment, currently stands at 70/100.
While considered “greedy,” these levels are far from the excessive levels seen during Bitcoin’s all-time highs in March, when it hit 90/100.
Research firm Santiment has determined the most bullish feeling on Bitcoin since January.
However, they note that for the positive trend to continue, “FOMO” on the part of buyers needs to stay low.
