Bitcoin (BTC) faces a “flood” of institutional inflows ahead of the approval of a U.S. exchange-traded fund (ETF).
This is the view of Dan Tapiero, founder and CEO of 10T Holdings. join in Bulls are eyeing a huge shift in institutional Bitcoin adoption.
Tapiero: Massive capital inflows “will hit” Bitcoin
As excitement builds over the potential approval of a U.S. Bitcoin Spot Price ETF, Bitcoin’s price action has reacted in kind.
Meanwhile, the institutional tide is already showing signs of turning as BTC/USD hits an 18-month high. Open interest on the CME Bitcoin futures market, the classic institutional venue for Bitcoin derivatives, surpassed Binance for the first time this week.
For Tapiero, it was a watershed moment.
“There is now a renewed push for ‘institutional adoption’ of Bitcoin,” he announced on November 10.
“It’s real facts, not hopes, that drive ideas now. CME Bitcoin futures open interest surpassed Binance to take first place. The flood of capital from the traditional world is coming.”
On November 9, the total open interest in Bitcoin futures exceeded $17 billion, setting a seven-month high.As of this writing, the figure is slightly lower at $15.5 billion, according to data from Monitoring Resources coin glass.
The ETF is set to be approved in early 2024, but some believe approval could come as early as this month, and there is widespread optimism.
In its latest market update on November 10, trading firm QCP Capital further highlighted the potential potential of an Ethereum (ETH) spot ETF as it drives growth in the cryptocurrency market.
“While we expect approval of a spot BTC ETF to be delayed until January 2024, with cryptocurrency prices steadily moving higher towards the end of the year, the new narrative surrounding a spot ETH ETF should be enough to push animal spirits to gain a foothold again. ,” it wrote .
Bitcoin Daily RSI Signal Shows ‘Cautious’ Demand
However, in a broader bullish pattern, QCP warned that a series of lower highs in Bitcoin’s daily relative strength index (RSI) values could signal a cooling off from the highs to follow.
RELATED: Bitcoin hits $40,000 despite falling volume, confusing traders
“With expectations of a rate pause firming up and the macro picture becoming slightly more optimistic in the near term, we expect cryptocurrency prices to be supported. Dips will be bought quickly as FOMO traders try to get on board,” the report concludes road.
“However, caution is still required as we are at key resistance levels and BTC is experiencing a triple bearish divergence with the RSI, a reliable sign of stalled momentum.”
At the time of writing, BTC/USD is trading near $36,500, according to data from Cointelegraph Markets Pro and Cointelegraph Markets Pro trading view. ETH/USD rose more than 4% on the day, surpassing the $2,000 mark.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
Svlook
