ETFs on Fire: Spot Bitcoin ETFs Surge
Last week, spot Bitcoin ETFs experienced their second-largest day of inflows, with nearly $900 million. This influx has led to speculation of an imminent price surge. Retail investors are driving this activity, indicating institutions are yet to join the fray. However, past patterns suggest this surge might precede a local top, with inflows dropping significantly afterward.
The upcoming geopolitical and macroeconomic factors, including potential geopolitical escalations, could spook ETF holders and possibly push BTC down to around $61k. Conversely, positive news could drive BTC up to $81k.
Roaring Kitty Returns
Keith Gill, famously known as “Roaring Kitty,” has reappeared after a three-year hiatus and is live streaming about GameStop. His return has sparked speculation about another meme stock mania.
Retail investors, driven by financial desperation, are back in the market, potentially influencing crypto. Keith’s massive GameStop bets and live streams have led to real-time stock movements, indicating his continued influence. However, institutional investors may be better prepared this time, potentially leading to more volatility.
Jobs Data Disappoints
The US added more jobs than expected last month, with unemployment ticking up to 4%. This mixed data increases the likelihood of the Federal Reserve maintaining a hawkish stance in its upcoming meeting.
The DXY (US Dollar Index) has strengthened, reflecting diverging interest rates between the US and other regions. This divergence might be strategic, pressuring non-USD countries economically. This week, the Fed’s decisions could significantly impact crypto and traditional markets.
Trump’s Crypto Pitch
As a presidential candidate, Donald Trump is doubling down on his support for crypto, raising tens of millions of dollars from the crypto community. This support comes in response to President Biden’s veto of a pro-crypto resolution.
While a Trump presidency could bring short-term market volatility due to potential changes in Federal Reserve policies, it could eventually lead to higher stocks and crypto prices.
EU Restricts Stablecoins
Binance announced that EU users would be restricted access to certain stablecoins at the end of the month to comply with new EU regulations. These regulations require issuers of large stablecoins to register with appropriate authorities, which is proving challenging for many. EU users might lose access to stablecoins like USDT, impacting trading pairs and overall market stability in the region.
Top Performing Cryptos of the Week
Audius (AUDIO), Stacks (STX), Injective Protocol (INJ), Casper (CAS), and Binance Coin (BNB) were last week’s top-performing cryptos.
- Audius (AUDIO): The Rally is likely linked to increased activity on the Bitcoin blockchain. Resistance is at $60; support is at $45.
- Stacks (STX): Boosted by a Binance research report. It could break out to $5 if it surpasses the $2.5 resistance level.
- Injective Protocol (INJ): Driven by new tokenomics paper. Resistance at $33 needs a new catalyst to push further.
- Casper (CAS): Gains from ongoing world tour events. The potential head and shoulders pattern suggests a drop to $0.05 if unable to break $0.20.
- Binance Coin (BNB): Surged due to increased blockchain activity and Binance’s user milestone. Forming a bullish cup and handle pattern, aiming for $1,000.
