10x Research, a crypto research company has recently warned of a steep decline in the value of cryptocurrency. Ethereum Price increases could cause Bitcoin A June 7th analysis, shared with CryptoSlate.
ETH has struggled to keep up with Bitcoin in the last week. The price of the second largest digital asset dropped by about 1.2%, while BTC rose more than 3%. The note does not explain why 10x Research thinks Ethereum might hold Bitcoin from a sentiment standpoint.
According to 10x Research, traders were willinger to gamble on BTC due the Ethereum future. The firm also predicted that the demand for ETH ETFs would be lower than expected.
This is what it says:
“Positioning in Ether futures is already stretched, and as SEC Gary Gensler said this week, it might take a while until those (S-1) ETH ETFs are approved. Futures positioning increase in ETH has lagged this week at $0.3 billion as traders prefer to buy Bitcoin exposure at this point, [recording] $2.2 billion. The numbers speak for themselves.”
BTC can achieve new heights
Bitcoin is expected to reach an all-time record high of 83,000 dollars if a certain technical pattern breaks today, Wednesday, or even as soon as tomorrow, Friday, June 7.
Markus Thielen is the CEO of 10x Research.
“It’s only a matter of time until Bitcoin hits a new all-time high. The head-and-shoulders formation indicates a rally toward $83,000 soon, with the resistance line likely breaking within the next few days.”
This firm attributes its positive outlook to the recent economic activity in Canada, Denmark and Europe, as well as interest rate reductions. Predictions also take into account a weaker US employment market The new ATH is supported by a possible decline in inflation.
10x Research explained further that, on average, it takes $800,000,000 or $8 Billion in inflows in order to raise Bitcoin’s value by 10% and 1% respectively. Inflows from different sectors are responsible for these inflows. Bitcoin ETFs alone accounted recently for 35%.
In order to see a weekly Bitcoin rise of 5% on the market, $4.2 billion would be needed in new inflows. Bitcoin Spot ETFs seeing $1.7 billion. In order for Bitcoin to achieve its new projected all-time highest of $83,000, however, 10x Research believes that it will require more than $13 billion across all sectors to get there. It also said:
“A breakout above the $71,600 trend line will naturally result in more upside buying through multiple products, but $13 billion [in inflows] requires quite some commitment. Nevertheless, we think this is possible as a weaker US employment market (unemployment rate at 4.0%) and lower inflation data next week (3.3%) will likely provide the macro backdrop for new all-time highs.”
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Source: cryptoslate.com