Bitcoin (BTC) has continued its recovery, with a price above $113,400 at the time of press, having increased by almost 1.21% over the previous week. The surge in the value of the cryptocurrency is backed by changes in the market sentiment which are favorable.
This is seen in the changes of spot Exchange Traded funds (ETFs) into $368 million on Monday. Traders are now favouring the upcoming U.S. economic data to guide it through the next few days.
Source: SoSo Value
Bitcoin started the week on an optimistic note. It has continued its three-day streak of gains, momentarily hitting above $113,000 on Tuesday. The momentum was made favorable due to new inflows of capital to which SoSoValue posted a $368.25 million inflow of ETFs. This was after two days of outflows as a marker of changes in market dynamics. If that this trend of inflows persists, it may assist in the maintenance of the Bitcoin recovery.
Also Read: Bitcoin (BTC) surged past $113K as Fed rate cut hopes fuel bullish outlook
A few months after the price increase, BTC has been trading in a small trading range. This consolidation of prices is even after institutional buildup is heavy. Nonetheless, as CryptoQuant analysts said, the Bitcoin futures market has been weak. This is one of the major considerations since the price of BTC has generally been driven by actions in the futures exchange.
It is clear that the participation of the whales in the futures has reduced. The average order size, calculated as a division of total volume trades, demonstrates more retail-oriented transactions. Such a change in volume indicates that the small traders are contributing more to the price of BTC than the large institutional traders. The Futures Volume Bubble Map also indicates the decelerating market, as there is lower trading activity.
Source: X
Some additional insight into the futures market of Bitcoin shows that selling pressure dominated. According to the BTC Futures Taker CVD information, the sellers exerted more pressure. This leads to the bearishness of the future market where traders anticipate further depreciation. The price of Bitcoin can be expected to keep falling without either an intervention of the whales or a good market catalyst.
Source: X
The futures market is decelerating, and BTC’s fixation on the futures trading is waning, as whales weaken their holdings and retail traders rise. This change in market action has strengthened the bearish mood. According to analysts, the price of Bitcoin might be range-bound without heightened institutional demand. A whale turnaround would be required to disrupt the current stagnation and spur on a rise in price.
Besides the futures market environment, the interest of institutions in the cryptocurrency world is on the rise. This trend is evidenced by Nasdaq committing $50 million to Gemini. The platform is intending to raise an amount of $317 million through its next IPO, which will be 16.67 million shares at a price of $17-19.
BTC is one of the important points of interest to traders even after the cooling futures market. The impending news of the U.S. economic climate and possible revolutions in the market might be the stimulus that BTC requires to step out of this bracket.
Also Read: Bitcoin Holds Strong Above $111,000 Despite $12.7 Billion Whale Sell-Offs
Also read: Grayscale Crypto ETF Filings for Litecoin, Hedera, BCH
