Bitcoin-BTC price is floating above $30.2k after expected correction. Retail investor enthusiasm is ‘likely to increase’: analyst

Good morning Here’s what happens:

Prices: Positive events led to a crypto market bounce and an altcoin rally, although subsequent corrections were to be expected, a crypto fund manager said. BTC is comfortably holding above $30,000.

Insights: The strong inflow into Toronto’s Purpose Bitcoin ETF indicates high retail demand for such products and bodes well for US companies with pending BTC filings with the SEC.

Bitcoin remains stable above $30,000

For the start of the Asian business week, bitcoin is holding its position above $30,000 even though ether has slipped below $2,000.

The unexpected surge in crypto prices over the past week was due to a court ruling in the Ripple SEC case, but Joe DiPasquale, CEO of crypto fund manager BitBull Capital, said in a note that after the market overheated, “corrections are pending “. expected”.

DiPasquale wrote that in the event of a correction, Bitcoin is “unlikely to trade below $27,000 for long” and that “the market is likely to consolidate in the current zone for now.”

The question is: where does the market go from here? The past week has already been a busy week with the release of scheduled economic data and has been made even busier by market movements due to the XRP-led altcoin rally.

“Looking ahead, we anticipate no major events or economic data releases scheduled this week. Therefore, we anticipate that price action in the market will be influenced by the level of open interest, which reflects trader sentiment, as well as trending topics such as memes and artificial intelligence,” said Johnny Teng. lead researcher at LBank Labs, said in a note. “As retailers may have missed last week’s price action, their enthusiasm to participate in the market is likely to increase.”

Currently, Bitcoin’s price is expected to fall despite fewer short positions and then rise due to near-term liquidity and resistance nearby, Teng explained, while trading volume of Ether and other altcoins is expected to increase.

This could be part of a consolidation move to keep bitcoin at the $30,000 level instead of breaking out and moving higher.

What do rising inflows into Purpose’s Spot Bitcoin ETF mean?

If – or when – the SEC finally approves a spot Bitcoin ETF, it won’t be the world’s first, however. That honor goes to Ontario, Canada, where Purpose Investments holds the title of the world’s first Bitcoin ETF to be approved by the Ontario Securities Commission in 2021.

Glassnode’s flow data shows that investors continue to invest in Purpose’s Bitcoin ETF BTCC, with the next 5638 BTC flowing into the ETF in June and July. Not only has this growth given Purpose an edge over potential competition, but more importantly, it strongly suggests that there is a big appetite for a spot ETF bitcoin product among average investors.

Data from Factset shows that BTCC, Ontario’s largest bitcoin ETF, is almost entirely owned by retail investors, with just 0.03% institutional ownership — a single firm called Yorkville Asset Management.

Based on these two data points, it’s safe to say retailer enthusiasm for Bitcoin as an ETF-grade asset is high. Being a first mover has a significant benefit.

Almost all Canadian brokers have access to US listed stocks, while the availability of Canadian stocks in the US is limited. Or to put it this way, Canadians could easily abandon Toronto-listed BTCC and buy US spot bitcoin ETFs, but American retailers aren’t really buying in the North.

That’s why this continued flow of funds is interesting. This shows that there is a great advantage in being first in this market as the customer base is not likely to switch to the competition. In fact, they buy more.

In the bitcoin futures ETF market, “the difference between the first and second markets was a few days, and the first-placed product has about $1 billion in assets, while the second-placed product has less than $100 million .” She said.

No one expects a Toronto-listed ETF to have more assets under management than a U.S. counterpart. But with an AUM of $852.5 million (CAD$1.1 billion), Purposes BTCC is no slouch and is still growing.

Still, the first-mover advantage of Purpose is unlikely to be that the winner takes it all.

The price of XRP has skyrocketed after a US judge ruled that selling XRP tokens on exchanges does not constitute investment contracts. Willkie Farr & Gallagher LLP Counsel Michael Selig and Attorney Alex Damsker offered their respective legal views on Ripple’s partial victory in the battle with the US Securities and Exchange Commission (SEC). Dave Weisberger, CEO and co-founder of CoinRoutes, discussed his analysis of the crypto markets. And Arkham founder and CEO Miguel Morel is addressing concerns from privacy-centric crypto advocates after announcing a new crypto data marketplace.

This article was written and edited by CoinDesk journalists for the sole purpose of providing the reader with accurate information. If you click on a Glassnode link, CoinDesk may receive a commission. Please see our Ethics Policy for more information.

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