New trends in digital currencies suggest positive changes, particularly for Bitcoin and Ethereum, as financial experts have noted. Specifically, on May 18, there was an alert for Bitcoin ETFs, which showed an excellent opportunity to trade. This was backed by another analysis on May 20 that showed an upward trend in the Bitcoin Greed & Fear Index. These consecutive reports indicate a growing opinion that FOMO may soon drive markets forward as more substantial investments return to cryptocurrencies again.
Analysts at the firm turned notably more upbeat on Bitcoin during a strategy broadcast to paying customers on May 16. They said that recent changes in macroeconomic fundamentals have largely dispelled the inflation threats that previously led to sharp selloffs in bitcoin in mid-March and mid-April. Such adjustments can be considered preparation for the further breakout of the current market consolidation.
A trade signal alert issued on May 18 indicated that Bitcoin ETFs could rise by 17% to 20% over the next month. Despite this, the firm recognizes Bitcoin’s volatility and risk of failure but remains optimistic about its future success. They have also expanded their signal coverage to include crypto-equity signals, focusing mostly on organizations such as GBTC and MicroStrategy.
Historically, GBTC buy signals, which signalize Bitcoin Spot ETFs, had a success rate of about 70% with price range breakout analysis. That has remained consistent and dependable over the period under consideration, with the exception of the bear market in 2022. On average, within two weeks of their occurrence, these buy signals have produced a median of +18.5% and an average of 14.1%.
Recently, MicroStrategy has been given another buy signal, but with a lower success rating of 60%. However, the estimated rates are still favorable, with a median rate of 12% and an average rate of 15.9% within two weeks. This indicates that the market sentiment is shifting again towards bull runs for MicroStrategy.
A notable detail from the company is that if Bitcoin sustains a price above $71,000 for three consecutive days, this may indicate a buying signal, resulting in a +9% increase over the next two weeks. This signal has been accurate 80% of the time and suggests that Bitcoin could be at or above $80,000 by June.
Current market trends indicate that even though the value of futures is slightly lower than the recent surge, with global trading at $18.2 billion compared to $20 billion when Bitcoin was at $71,000, Ethereum’s futures are rising. This shift means that there is a substantial market signal of a continuing surge in Ethereum prices.
Retail investors trade cryptocurrencies cautiously, despite rising demand and sentiment. This is especially the case in markets such as Korea, where the total cryptocurrency trading turnover barely exceeds $2 billion. Instead, during its peak popularity within Solana meme tokens earlier in the year, it rose to $16 billion. However, experts believe that for further development in the cryptocurrency industry, all market segments need to be highly active.
Investments in cryptocurrencies remain strong, with about $1 billion pumped into Bitcoin ETFs in the past five trading sessions. On the other hand, stablecoin inflows and futures leverage for both BTC and ETH have also been on the rise. This continuous flow of funds, which is reported to have increased by about $4 billion in the last week alone, is expected to further push the market up.
These inflows are upgrading the market structure and significantly reducing the threat of inflation, bringing down Bitcoin and potentially causing even more FOMO among traders and investors. Thus, it can further fuel the prices, not to mention that traditional financial investors are likely to come back to the market as the situation becomes more apparent and the outlook becomes much more favorable.