Bitcoin Poised For New All-Time High But Ethereum Could Be A Drag

Bitcoin Poised For New All-Time High But Ethereum Could Be A Drag

By: Isha Das

Crypto research firm 10x Research has issued a warning that a sharp decline in Ethereum prices could hinder Bitcoin from achieving a sustainable new all-time high of over $83,000.

Over the past week, Ethereum's price has struggled compared to Bitcoin's impressive performance. While Bitcoin rose by more than 3%, Ethereum saw a decline of about 1.2%. Although 10x Research did not provide an explicit explanation, they believe that Ethereum's current market position could dampen overall sentiment for Bitcoin's rise.

10x Research notes that traders are more inclined to invest in Bitcoin, predicting that the demand for Ethereum exchange-traded funds (ETFs) will fall short of expectations. They stated: "Positioning in Ether futures is already stretched, and approval for those ETFs may take some time. Futures positioning in Ethereum lagged this week at $0.3 billion while Bitcoin recorded $2.2 billion in the same period."

Bitcoin's Road to $83,000

The firm also believes Bitcoin could soon hit a new all-time high of $83,000 if it breaks a key technical pattern by mid-June. Markus Thielen, CEO of 10x Research, said, "It’s only a matter of time until Bitcoin hits a new all-time high. The head-and-shoulders formation indicates a rally towards $83,000 soon, with a resistance line likely to break within the next few days."

This prediction aligns with recent global economic trends, including interest rate cuts in Canada, Denmark, and Europe, as well as a weaker US employment market and anticipated lower inflation. These factors contribute to 10x Research's bullish outlook.

The research firm further detailed that raising Bitcoin's price typically requires substantial inflows, estimating that $800 million or $8 billion is needed to increase Bitcoin’s price by 1% and 10%, respectively. These inflows come from various sources, including Bitcoin ETFs, which recently accounted for 35% of total Bitcoin flow.

To achieve a weekly rally of 5%, the market would require $4.2 billion in inflows, with Bitcoin Spot ETFs seeing $1.7 billion. To reach the projected $83,000 mark, Bitcoin would need over $13 billion in inflows across all sectors. 10x Research added: "A breakout above the $71,600 trend line will naturally trigger more buying activity. Nevertheless, we think $13 billion [in inflows] is achievable, especially with a weaker US employment market and lower inflation data expected next week."

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