Multiple Bitcoin exchange-traded funds (ETFs), including ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF), experienced a 5% jump in their pre-market hours on Tuesday. This significant rise generally points to institutional buying, with investors anticipating an upcoming price rally for BTC.
Institutional buying activity in Bitcoin, previously recorded in March, has caught attention once again. The year began with institutional investors, miners, and retail investors investing in BTC and other cryptocurrencies. However, factors such as regulatory challenges, lawsuits, and macro factors caused the BTC price rally to fade.
The recent agreement between President Joe Biden and Republicans on a two-year deal to raise the debt ceiling averted a potential financial crisis, positively affecting Bitcoin and stock markets. The deal, which Biden and House Speaker Kevin McCarthy remain optimistic about finalizing before the US Treasury runs out of money, will cap some government spending and eliminate a 30% tax on Bitcoin mining.
As a result, Bitcoin ETFs witnessed an increase, with BITO jumping 5% to $16.19 and BTF rising 5% to $10.87 in pre-market trading. Crypto shares also saw a bullish trend, including Coinbase (COIN) up 4%, Marathon Digital at 7%, and Riot Blockchain increasing 7%. Other crypto stocks experienced higher trading during pre-market hours.
The drop in the US 10-year Treasury yields to 3.73% on Tuesday and the US dollar index (DXY) falling below 104 contributed to a positive outlook for the stock market, which is expected to open in the green amid a rise in AI-related and crypto stocks.
BTC’s price increased by 2% within the last 24 hours, currently trading at $28,034. Its 24-hour low and high are $27,563 and $28,044, respectively. Trading volume has remained low over the last 24 hours, as traders are waiting for clear signals. It is anticipated that fresh institutional buying will likely push the BTC price above $30,000.
While the market shows positive signs, it is essential to conduct thorough market research before investing in cryptocurrencies. Market conditions are subject to change, and the author or publication does not hold any responsibility for personal financial loss.
Source: Coingape
