Boost

bullish

Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/institutional-investors-boost-bitcoin-price" data-wpel-link="internal" rel="noopener noreferrer nofollow">Institutional Investors Boost Bitcoin Price</a><br></p>
<p style="text-align: justify">Despite recent market turbulence, institutional <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> have maintained their risk exposure in <a href="https://en.bitcoinhaber.net/german-government-transfers-700-btc" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) futures, aiding the cryptocurrency’s price resurgence. According to analysts at JPMorgan, this recovery signifies cautious optimism in the crypto market.</p>
<h2 id="institutional-investors-raised-the-price">Institutional Investors Raised the Price</h2>
<p style="text-align: justify">On Monday, the cryptocurrency market witnessed its steepest decline since the FTX debacle, with Bitcoin’s price plummeting over 15% to touch $48,800. However, the price swiftly bounced back to over $57,000. JPMorgan analysts highlighted that institutional investors’ decision to not cut back risk in Bitcoin futures was a key factor in this quick recovery.</p>
<p style="text-align: justify">JPMorgan’s futures position indicator, which monitors the cumulative open positions in CME Bitcoin futures contracts, shows a positive slope in the futures curve, indicating a bullish sentiment among these investors. Analysts pointed out that the premium of futures prices over spot prices underscores their confidence in Bitcoin.</p>
<h2 id="causes-of-the-recent-drop-identified">Causes of the Recent Drop Identified</h2>
<p style="text-align: justify">Last week, Morgan Stanley began recommending spot Bitcoin exchange-traded funds (ETFs) to select clients. Coupled with this, the extensive liquidations tied to the bankruptcies of Mt. Gox and Genesis are now behind us, while cash disbursements from the FTX bankruptcy could further elevate demand in the crypto market later this year.</p>
<p style="text-align: justify">Additionally, bipartisan support for favorable cryptocurrency regulations in the US is bolstering market optimism. However, analysts caution that these positive factors are already largely priced in.</p>
<h2 id="key-takeaways-for-investors">Key Takeaways for Investors</h2>
<p style="text-align: justify"><b>Implications for Market Participants:</b></p>
<p style="text-align: justify">– Institutional investors are maintaining a bullish stance on Bitcoin futures.<br> – Morgan Stanley’s endorsement of Bitcoin ETFs could lead to increased market demand.<br> – The resolution of major bankruptcy liquidations may stabilize the market.<br> – Regulatory support in the US is contributing to positive investor sentiment.</p>
<p style="text-align: justify">Nonetheless, Bitcoin’s current price level, hovering around $57,000, nears JPMorgan’s estimated production cost of $45,000. Analysts warn that if Bitcoin’s price remains at or below this level for an extended period, it could exert further downward pressure on Bitcoin miners, potentially dragging the price down further.</p>
<p style="text-align: justify">In summary, while institutional investors play a pivotal role in Bitcoin’s price recovery, retail investors and momentum traders have contributed to recent declines. The evolving dynamics between these market participants will be crucial in determining Bitcoin’s <a href="https://newslinker.co/what-are-the-future-technologies/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">future</a> price trajectory.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/institutional-investors-boost-bitcoin-price" data-wpel-link="internal" rel="noopener noreferrer nofollow">Institutional Investors Boost Bitcoin Price</a></h5>

Institutional Investors Boost Bitcoin Price

Table of Contents

BH NEWS

Other articles published on Aug 8, 2024

Will Terra Classic (LUNC) Recover from the Price Crash and Hit New Highs?

Market Optimism & Upbit Listing Fuels Pendle Price’s 50% Surge

Surviving the Crypto Crash: Stacks’ Recovery Prospects and Top Meme Coins Presale by Market Cap

Exploring the Most Promising Investment Opportunities in Crypto: Unlock the Best Crypto Presale i...

BitGo Clinches Regulatory Nod in Singapore, Taps Asian Expansion

Binance Labs Announces Second Cohort of Season 7 Incubation Program: Aarc, FluxLayer, and Ton Ton...

Join our free newsletter for daily crypto updates!