Bitcoin Price Prediction as Millennium Management Holds $2B in ETFs – Bullish Signal for BTC?

Forex
May 16, 2024
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Bitcoin Price Prediction

Bitcoin rebounded strongly, surpassing $65,930 and reaching a peak of $66,591 on Thursday. Softer-than-anticipated U.S. inflation data fueled this rally by increasing the likelihood of interest rate cuts and boosting investor confidence across the crypto market.

As Bitcoin climbed, it catalyzed gains across other major cryptocurrencies like Ethereum, Dogecoin, and Ripple, pushing the global cryptocurrency market cap to $2.39 trillion, a 24-hour surge of more than 5%.

Adding to the positive market dynamics, Millennium Management, a prominent hedge fund, has significantly invested in Bitcoin ETFs, holding nearly $2 billion in assets, underscoring strong institutional support for Bitcoin.

Millennium Management Leads in Bitcoin ETF Investments with Nearly $2 Billion Holdings

Millennium Management, an international hedge fund, has made a substantial investment in spot Bitcoin ETFs, holding nearly $2 billion as of the first quarter of 2024. According to their latest 13F filing with the SEC, Millennium’s investment spread across five prominent ETFs totaled approximately $1.94 billion by March 31.

JUST IN: Millennium Management discloses $2 billion spot #Bitcoin ETF portfolio.

— Watcher.Guru (@WatcherGuru) May 15, 2024

These investments were diversified among several key products, including the ARK 21Shares Bitcoin ETF, Bitwise Bitcoin ETF, Grayscale Bitcoin Trust, iShares Bitcoin Trust, and Fidelity Wise Origin Bitcoin ETF.

Largest Holdings: BlackRock’s Bitcoin fund, with over $844 million, and Fidelity’s fund, closely following at just over $806 million.Market Impact: Bloomberg’s Eric Balchunas highlighted Millennium as having 200 times the exposure of typical new ETF investors.

The significant engagement of professional investors like Millennium suggests a robust institutional interest in Bitcoin, reinforcing a positive outlook for its future. Matt Hougan of Bitwise has expressed optimism, noting that the scale of professional investment might lead to a combined AUM nearing $5 billion. This trend underscores the growing acceptance of Bitcoin among seasoned investors, enhancing its profile in the investment community.

BTC Rises Above $66,000 Amid Expectations of Potential Rate Cuts on Softer US Inflation Data

Bitcoin surged above $66,000 yesterday, achieving its highest single-day gain in nearly two months. The most recent US Consumer Price Index (CPI) data, which showed a slower inflation rate of 0.3% month-over-month for April, below the anticipated 0.4%, was the driving force behind this significant uptrend.

This unexpected slowdown heightened investor expectations for potential rate cuts. Meanwhile, Retail Sales for the same period remained stagnant, further underscoring economic softness and bolstering the case for monetary easing.

Core PPI rose by 0.5% month-over-month, surpassing expectations.Softer CPI and stalled retail sales have increased optimism for potential rate cuts.

This amalgam of economic indicators has sparked a bullish outlook for Bitcoin, as softer inflation could prompt the Federal Reserve to ease monetary policy sooner.

Bitcoin ETFs See Record Inflows, Driving BTC Price Surge to $66,000

On May 15, Bitcoin ETFs in the United States experienced a significant boost in inflows, totaling $303 million, the largest since early March. This influx was led by Fidelity’s FBTC fund, which attracted $131 million, and Bitwise’s BITB fund, receiving $86 million. Notably, Millennium Management is the largest institutional holder in this space with an investment totaling $2 billion across various Bitcoin ETFs.

Top Fund Inflows: Fidelity’s FBTC ($131 million) and Bitwise’s BITB ($86 million).Key Driver: Bitcoin’s 7% price increase to $66,000, spurred by US inflation data suggesting potential rate cuts.

This remarkable inflow into Bitcoin ETFs, combined with favorable economic indicators, has significantly bolstered Bitcoin’s market value, pushing its price to $66,000. This trend underscores the growing investor confidence in cryptocurrencies as a viable investment amid shifting economic conditions.

Bitcoin Price Prediction

With a bearish Bitcoin price prediction, BTC is experiencing a slight downturn, trading at $65,930, marking a 0.44% decrease. The cryptocurrency is hovering just below its pivotal point of $66,260, a critical juncture that could determine the next directional move.

The Relative Strength Index (RSI) is elevated at 74, indicating that BTC is possibly overbought, which might precede a pullback if bullish momentum does not sustain.

Bitcoin Price Prediction – Source: Tradingview

Immediate support and resistance levels are crucial to watch. The first significant resistance lies at $67,820, with subsequent barriers at $69,084 and $70,643. A push above these levels could signal a strong bullish continuation. Conversely, support levels are set at $64,732, followed by $63,438 and $61,438. A breach below these could confirm a bearish trend, especially if the price falls beneath the pivot point.

The 50-Day Exponential Moving Average (EMA) stands at $62,687, further supporting the idea that the mid-term trend has been bullish, but caution is warranted given the current RSI levels.

Current Trend: Cautiously bearish unless BTC decisively clears the $66,260 pivot point.

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