Bitcoin (BTC), the largest cryptocurrency by market capitalization, may be on track for its best week since March as it increases 18% weekly.
Bitcoin may be in for one of its strongest weeks of the year thanks to expectations that proposed exchange-traded funds may portend the emergence of new sources of demand.
BTC was marginally up on the last day at $30,172 at the time of writing, putting it on track for an 18% weekly increase, the most for such a time frame since March.
The Securities and Exchange Commission received a surprising submission on June 15 from BlackRock Inc., one of many U.S. applications to launch ETFs that invest in spot Bitcoin. The move by the world's largest asset manager has sparked traders' optimism.
Over the past week, four major ETF companies — iShares, Bitwise, WisdomTree and Invesco — have submitted applications for Bitcoin ETFs.
Bitcoin's move buoyed by technical factors
Bitcoin's recent move is likewise buoyed by technical factors, as the lead crypto entered a tight trading range before its subsequent move higher.
On-chain analytics firm Glassnode noted that, based on historical precedents, extremely tight trading ranges have preceded large, volatile moves in either direction. It points out that the 30-day Bitcoin High and Low price range detected incoming volatility based on this premise, with the most recent rally being no exception.
Currently, Bitcoin holders are in a state of profit. Glassnode reports that following the recent surge in Bitcoin price action, market participants have locked in a nontrivial $537 million in profit, the second largest profit-taking event over the last year.
The recent Bitcoin breakout above the $30,000 price level has also inspired an uptick in profits sent to exchanges, recording a profitable inflow of $62.8 million.