The upcoming weekend can decide whether Bitcoin can continue on its bullish streak or the market goes back into the bear territory once again. Recently, $675 million worth of options expired, and there is a golden chance for bulls to bust a move. Bulls are currently riding on the wave of a 20% weekly appreciation of Bitcoin that saw a price point of $46,743.
Market analysts claim that institutional investors are looking at two major factors for extending exposure in the Bitcoin market. Firstly, the number of net deposits in the derivatives exchange markets has declined lower than May 11. Secondly, digital wallets with 10K-100K Bitcoin units have collectively invested in $12 billion worth of flagship cryptocurrency. Additionally, PayPal subsidiary Venmo has allowed credit card users to purchase four digital assets.
Application for Bitcoin-based ETF
Another important factor that encourages investors to take a renewed interest in Bitcoin is the new applications for Bitcoin ETFs. The investment giant VanEck has recently submitted a new ETF application that has a high probability of getting approval. Gary Gensler, the new SEC Chief, recently pointed out that if the investment vehicles are ready to make specific changes in their ETF applications, then SEC might signal a green light.
BitMEX has recently settled a case with CFTC and Financial Crimes Enforcement Network. The crypto exchange platform has agreed to compensate 100 million in civil penalties. The crypto exchange has also agreed to the charges of illegally operating a trading forum. This new development has also increased the bullish tendency for Bitcoin.
The bears are betting on a $44,000 price mark for Bitcoin to make some profit from the market. If the said price stays for the weekend, bulls can be in trouble. At present, the bulls are trying to push the price of flagship cryptocurrency over $48,000. At this price point, the expiry notional can go higher than $80 million.
This way, the bulls can stay in a dominant position with a $325 million mark. However, bears are trying to pull Bitcoin prices to $44,000 that will reduce the total advantage for bulls to only $80 million. The return for moving Bitcoin at the current time is only 5%, and below $46,500, it seems like a futile effort.