Ethereum
Bitcoin Expected To Hit New All-Time High Next Week, But Ethereum Holds It Back
Crypto research firm 10x Research has warned that a sharp drop in Ethereum prices could prevent Bitcoin to reach a new sustainable all-time high of over $83,000, according to a June 7 analysis shared with CryptoSlate.
Over the past week, the price of ETH has suffered significantly compared to the price of Bitcoin. The second-largest digital asset fell around 1.2% during the period, while the price of BTC rose over 3%. Although not explicitly explained in the note, 10x Research believes that Ethereum could hold Bitcoin back from a sentiment perspective.
10x Research, citing Ethereum’s future position, noted that traders are more willing to bet on BTC. Additionally, the company predicted that demand for ETH exchange-traded funds (ETFs) would be lower than expected.
He declared:
“Ether futures positioning is already tight, and as SEC Gary Gensler said this week, it it might take a while until these ETH ETFs (S-1) are approved. The increase in ETH futures positioning lagged this week to $0.3 billion as traders prefer to buy exposure to Bitcoin at this point, [recording] $2.2 billion. The numbers speak for themselves.”
How BTC can reach a new ATH
At the same time, the company believes that Bitcoin could soon reach a new all-time high of $83,000 if it breaks a key technical pattern as early as today, June 7, or by Wednesday, June 12.
Markus Thielen, CEO of 10x Research, said:
“It’s only a matter of time before Bitcoin hits a new all-time high. The head and shoulders formation indicates a rally towards $83,000 soon, with a likely break of the resistance line in the coming days.
The company attributed its optimistic outlook to recent global economic activities, including interest rate cuts in Canada, Denmark and Europe. The prediction also takes into account a American labor market and a potential decline in inflation as factors supporting the new ATH.
10x Research further explained that it typically takes around $800 million or $8 billion in inflows to increase the price of Bitcoin by 1% and 10%, respectively. These flows come from various sectors, including Bitcoin ETFs, which recently accounted for 35% of the total Bitcoin flow.
So, to achieve a 5% weekly Bitcoin rally, the market would need $4.2 billion in inflows, with Spot Bitcoin ETF see $1.7 billion. However, to reach its new predicted all-time high of $83,000, 10x Research expects Bitcoin to require over $13 billion in inflows across all sectors. He added:
“A break above the $71,600 trendline will naturally lead to more upside buying across multiple commodities, but $13 billion [in inflows] requires some commitment. Nonetheless, we believe this is possible as a weaker US jobs market (unemployment rate at 4.0%) and weaker inflation data next week (3.3%) will likely provide the macroeconomic backdrop for new all-time highs.