Several bitcoin exchange-traded funds (ETFs), including ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF), are up 5% in premarket trading on Tuesday.
The significant increase in bitcoin ETF prices generally points to institutional buying. Institutional investors are investing in Bitcoin ETFs in anticipation of an impending BTC price rally.
Institutional investors are flocking to Bitcoin ETFs
After several weeks of outflows since March, the first signs of institutional bitcoin buying have returned. The year started with institutional investors, miners, and retail investors buying BTC and other cryptocurrencies. However, due to regulatory challenges, lawsuits, and macroeconomic factors, the surge in BTC price slowed.
After President Joe Biden and Republicans reached a two-year deal to raise the debt ceiling, Bitcoin and stock markets reacted positively as a possible financial crisis was averted. Biden and House Speaker Kevin McCarthy remain optimistic about completing the deal just days before the US Treasury Department runs out of money.
As a result, bitcoin, tech, and crypto stocks started surging as the deal will cap some government spending and eliminate a 30 percent tax on bitcoin mining.
During premarket hours on May 30, Bitcoin ProShares Bitcoin Strategy ETF (BITO) is up 5% to $16.19 and Valkyrie Bitcoin Strategy ETF (BTF) is also up 5% to $10.87. Crypto stocks are bullish including Coinbase (COIN) up 4%, Marathon Digital up 7% and Riot Blockchain up 7%. Other crypto stocks are also trading higher in the premarket hours.
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BTC price to hit $30,000
The US 10-year Treasury yield fell to 3.73% on Tuesday after rising last week. The US Dollar Index (DXY) slipped below 104 after hitting 104.50 today. The stock market will open in the green on the rise of several AI-related and crypto stocks.
BTC price is up 2% in the last 24 hours and it currently stands at $28,034. The 24-hour low and high are $27,563 and $28,044, respectively. Additionally, trading volume remains lower over the past 24 hours as traders await clear signals. New institutional buying is likely to propel BTC price above $30,000.
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Varinder has over 10 years of experience in the fintech sector, including over 5 years in blockchain, crypto and web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5,000 news, articles and articles. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently reporting on the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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