Bitcoin Surpasses Key Psychological Milestone: Insights from an Analyst

Prominent crypto analyst and trader Ali Martinez recently shared potentially positive news for Bitcoin holders on the X social media platform. Martinez highlighted that the critical psychological threshold for Bitcoin is set at $27,900, which represents the short-term holder cost basis.

If Bitcoin maintains a price above this significant level, short-term BTC holders who have been experiencing marginal profits could find themselves back in the black, indicating a shift in market sentiment toward a more bullish outlook.

Earlier, Martinez noted that over half of the traders on a leading crypto exchange are currently betting against Bitcoin. Approximately 51% of accounts were shorting Bitcoin futures contracts, while only 49.31% were going long, anticipating a price rise.

"Bitcoin supply crisis in effect": Lark Davis

Popular crypto blogger Lark Davis reminded his followers that Bitcoin is consistently being withdrawn from exchanges by both individual and institutional investors. He observed that the Bitcoin supply crisis had commenced even before discussions around Bitcoin spot ETFs heated up this year. Notably, the world’s largest fund manager had filed for a Bitcoin spot ETF, prompting retail investors, whales, and institutions to actively acquire BTC and transfer it to secure wallets.

Ark Invest, led by Cathie Wood, was the first to file for a Bitcoin ETF with the regulatory body. Following suit, several other financial institutions, including Invesco and Fidelity, also submitted their ETF applications.

Bitcoin surges on misleading BlackRock news

Recently, the crypto community erupted in excitement following rumors that the American Securities and Exchange Commission had approved BlackRock’s ETF filing. As a result, Bitcoin’s price surged by approximately 10%, nearing the $30,000 mark. However, Larry Fink, the head of BlackRock, later clarified that these reports were inaccurate and that the application remained under review. Currently, Bitcoin is trading around $28,338.

Despite this, Mike Novogratz, the head of Galaxy Digital and a well-known investor, expressed to CNBC his belief that the first Bitcoin spot ETF will likely receive approval within this year. He noted that “all indications seem to be heading in the right direction” and emphasized the significant pressure to take rational action in response to public demand.