Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the stock market, trading, and all things related to Wall Street. Today, we are diving into the world of cryptocurrencies, specifically Bitcoin, and how recent trends in exchange reserves could impact its price.
As of May 20, Bitcoin investors were holding 1,914,152 BTC in exchange wallets. However, following news of an impending Ethereum ETF approval by the SEC, there has been a notable increase in Bitcoin inflows to exchanges. In just 3 days, investors have transferred 17,869 BTC, totaling roughly $1.2 billion, into the short-term market supply.
With institutional investors eyeing Ethereum ETFs for diversification, more Bitcoin could flow into exchanges, potentially flooding the market and exerting downward pressure on BTC prices. This shift in preferences among large investors may also deter swing traders from going long on Bitcoin in the near future.
The combination of these factors could lead to a prolonged period of Ethereum outperforming Bitcoin, as observed post-approval verdict. Meanwhile, Bitcoin price sits at $67,200, down 8% from its weekly peak, with the influx of BTC into exchanges posing a risk of a drop below $65,000 in the short term. The Bollinger band technical indicator further supports this bearish outlook for Bitcoin prices.
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