In a report published today, analysts at cryptocurrency exchange Coinbase outlined several factors that could support Bitcoin's price in the coming months.
Analysts believe Bitcoin will continue to be well supported over the next three to six months as more institutional investors adapt to the new reality of spot ETFs.
Coinbase's weekly report highlighted recent net inflows into eleven existing US spot Bitcoin ETFs. These inflows are seen as an indication of how institutional participation can serve as an important supporting factor for Bitcoin's price dynamics. “We have seen impressive net inflows totaling over $4.2 billion year-to-date,” Coinbase analysts added.
The report also drew parallels between newly launched Bitcoin funds and historical flows into Gold ETFs. “Looking at the ETF landscape more broadly, net inflows into Bitcoin ETFs have exceeded the inflows attracted by State Street's SPDR Gold Shares ETF in its first month, which is now one of the most historically successful ETF launches on record,” the report said.
Coinbase analysts also highlighted data showing Bitcoin finding strong support at its 100-day moving average.
*This is not investment advice.
