Bitcoin: Bullish Bets, ETF Inflows Support Case for Strong Upside in Coming Weeks
Investing.com | May 07, 2025 05:14AM ET
- Bitcoin's rise above $90,000 is supported by reduced tariff concerns and growing buyer interest.
- Ethereum faces pressure, but a push past $110,000 in Bitcoin may spark gains for the asset.
- A surge in Bitcoin-related investment inflows suggests potential price increases despite ongoing market uncertainty.
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As the tariff war begins to ease, buying interest has returned, helping Bitcoin rise above $90,000 per coin. Traders are now focused on the Federal Reserve. No immediate action is expected at the next meeting, but many hope to hear signs of a possible rate cut in June or July, with three reductions of 25 basis points likely in the second half of the year.
Meanwhile, ETH/USD, the second-largest crypto asset by market value, is still under pressure. The recent bounce from the $1,400 zone has been weak. Still, if Bitcoin pushes past $110,000, Ethereum may have a chance to gain more ground.
Surge in Bitcoin-Related Investment Inflows
Recent activity in Bitcoin options and ETF inflows suggests that strong price increases for Bitcoin are likely in the coming weeks. Just under $500 million has flowed into call options set to expire in late June, while over $3 billion has entered ETFs. These movements support the notion that buyers will maintain their advantage, especially if the tariff war does not escalate further and the Federal Reserve continues with planned rate cuts.
However, the biggest uncertainty remains with the tariff situation. Despite a temporary lull, Donald Trump has indicated he will reassess trade agreements and take further action. As a result, the market remains uncertain, and this volatility is expected to persist for the next few months.
Bitcoin Tests Key Technical Levels Ahead of Historic Highs
After successfully defending the long-term support around $74,000 per Bitcoin, demand is picking up. Buyers are now testing the psychological barrier of $100,000, and it could pave the way for a move toward new record highs.
If the support level holds firm, a double peak formation could form near the local support at $89,000 per coin. However, considering both the technical and macroeconomic conditions, the most likely scenario remains a breakout below this support, followed by an attempt to approach the recent historical highs.
Ethereum Struggles to Regain Bullish Momentum
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During the recent downturns, the supply side reached multi-year lows around $1,400 per coin. Buyers are now focusing on the nearest resistance level, which is near $2,200.
If market bulls are committed to a rally, breaking above $2,200 would be the first step, with the next target at $3,000 for Ethereum. However, if supply pressure persists and Ethereum moves back toward $1,400, a test of the psychological $1,000 level remains a realistic scenario.
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