BTC Market Update 6th June
Market Update đź“Š: Bullish Crypto and Extremely Bullish ETH
Ethereum (ETH) is projected to reach $6,000 by the end of the year or possibly sooner.
ETH ETF Trade:
- ETFs have the potential to accumulate over 1 million ETH.
- Currently, 3.3% of ETH’s circulating supply is held in investment vehicles globally.
Trend Analysis:
- ETH investment vehicle flows have been declining steadily since November 2021.
- This decline mirrored Bitcoin (BTC) flows until the U.S. spot ETF hype began.
- Investment flows have remained stagnant for the past 2.5 years.
- A significant trend shift is anticipated following the launch of U.S. spot ETH ETFs.
Forecast for U.S. Spot ETFs:
- Expected Net Inflows: $4 billion in the first five months.
- Basis of Estimate:
- Relative global ETH AUM market share compared to BTC: 28%.
- Comparison between CME’s ETH Open Interest (OI) and BTC: ETH currently at 23%.
- Benchmarking against cumulative spot BTC ETF inflows of $13.8 billion.
Projected Inflows:
- Estimated Net ETH Inflows: $3.1 billion to $4.8 billion.
- Equivalent to: 750,000 to 1,000,000 ETH.
- Represents: 0.65-0.85% of ETH’s circulating supply.
Market Dynamics and Outlook
Estimated inflows of $4 billion to ETH and approximately $3 billion of sell-side pressure in BTC (due to Mt. Gox releases) favor ETH/BTC strength over the summer. While ETH/BTC has been on a linear downtrend for the past two years, the imminent positive catalyst for ETH and corresponding negative catalyst for BTC suggest a potential breakout.
Periods of ETH outperformance tend to be short-lived but very strong. In 2021, ETH's significant outperformance against BTC occurred in a seven-week period from late March to mid-May. Given the current setup, ETH is positioned for summer strength. With the ETH/BTC ratio at 0.054, taking a long position on ETH versus BTC is considered advantageous.
Ethereum (ETH) is projected to reach $6,000 by the end of the year or possibly sooner.
ETH ETF Trade:
- ETFs have the potential to accumulate over 1 million ETH.
- Currently, 3.3% of ETH’s circulating supply is held in investment vehicles globally.
Trend Analysis:
- ETH investment vehicle flows have been declining steadily since November 2021.
- This decline mirrored Bitcoin (BTC) flows until the U.S. spot ETF hype began.
- Investment flows have remained stagnant for the past 2.5 years.
- A significant trend shift is anticipated following the launch of U.S. spot ETH ETFs.
Forecast for U.S. Spot ETFs:
- Expected Net Inflows: $4 billion in the first five months.
- Basis of Estimate:
- Relative global ETH AUM market share compared to BTC: 28%.
- Comparison between CME’s ETH Open Interest (OI) and BTC: ETH currently at 23%.
- Benchmarking against cumulative spot BTC ETF inflows of $13.8 billion.
Projected Inflows:
- Estimated Net ETH Inflows: $3.1 billion to $4.8 billion.
- Equivalent to: 750,000 to 1,000,000 ETH.
- Represents: 0.65-0.85% of ETH’s circulating supply.
Market Dynamics and Outlook
Estimated inflows of $4 billion to ETH and approximately $3 billion of sell-side pressure in BTC (due to Mt. Gox releases) favor ETH/BTC strength over the summer. While ETH/BTC has been on a linear downtrend for the past two years, the imminent positive catalyst for ETH and corresponding negative catalyst for BTC suggest a potential breakout.
Periods of ETH outperformance tend to be short-lived but very strong. In 2021, ETH's significant outperformance against BTC occurred in a seven-week period from late March to mid-May. Given the current setup, ETH is positioned for summer strength. With the ETH/BTC ratio at 0.054, taking a long position on ETH versus BTC is considered advantageous.
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.