The volume of exchange-traded funds (ETFs) based on the largest cryptocurrency, Bitcoin, has surged, signaling a bullish trend. Despite a recent pullback in the broader cryptocurrency market, with Bitcoin dropping below the $67,000 mark, the increase in ETF volume has sparked a significant recovery in the asset’s price.
On June 11, analysts at the on-chain platform Santiment observed that the volume of Bitcoin ETFs had reached its highest level since May 15, indicating a potential price rally. They emphasized that when such volume spikes occur, there is a greater chance of price movement, with the latest spike likely being a reaction to buyers taking advantage of the dip. The question was raised: “Do you anticipate a bounce?”
Leading up to two key events that could impact Bitcoin’s price action, namely the US Consumer Price Index (CPI) report and the Federal Reserve (Fed) rate announcement, the cryptocurrency had been experiencing significant fluctuations. The upcoming CPI report, expected to be released on June 12, could provide insights into inflation trends and potentially influence a crypto rally or crash depending on the results.
Cryptocurrency analyst Ali Martinez shared a Bitcoin chart showing a positive trend in the asset, suggesting that Bitcoin tends to rally following Federal Open Market Committee (FOMC) meetings. At the time of writing, the price of Bitcoin stood at US$67,742.40, reflecting a 1.3% increase over the past 24 hours.
Disclaimer: The opinions expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries a risk of financial loss.
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