Bitcoin Price Action Will 'Astonish' This Week: Analyst
The cryptocurrency hit an all-time high against the euro on Monday and is nearing a record in U.S. dollar terms.
Bitcoin (BTC) will reach an all-time high before the week ends, according to Markus Thielen, head of research at 10x.
“Price action during the weekend is always important to follow and while attempts have been made to [liquidate] leveraged long positions, there are no sellers,” said Thielen in a note titled, "Everybody Will Be Astonished by Bitcoin’s Price Action This Week."
The cryptocurrency reached an all-time high in euro terms on Monday and at press time was trading just above $67,000, up 6% over the past 24 hours, less than 3% shy of its all-time USD high of $69,000 touched in November 2021. The broader CoinDesk 20 Index (CD20) was higher by 5.5%.
Among other bullish signs, Thielen noted a sizable decline of 63,000 bitcoins held on exchanges over the past 30 days. Coinbase alone, he said, has seen its balance fall from 400,000 to 372,000 in just one month.
It's not all about U.S. ETFs either, said Thielen. BlackRock, he reminded, just launched a spot ETF in Brazil last week, and volumes in Korea have exploded to $8 billion per day for five straight days versus less than $1 billion previously.
While outflows out of Grayscale’s GBTC product spiked last Thursday and Friday and inflows into BlackRock's IBIT slowed, Thielen expects movement into the BlackRock product to resume in force this week. “The flows are not drying up as investors feel more confident the higher price appears to go."
Read more: Grayscale GBTC Selling Accelerates but Bitcoin ETF Inflows Remain Positive, Led by BlackRock
"If Grayscale’s flows drop to less than [a] $100m outflow, bitcoin will make a big move up," said Thielen.
Lyllah Ledesma
Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds a master's degree from New York University in Business and Economics and an undergraduate degree in Political Science from the University of East Anglia. Lyllah holds bitcoin, ether and small amounts of other crypto assets.