“Will be interesting to see if BlackRock or others attempt to piggyback on this & launch similar ETFs… Regardless, I expect there will be meaningful demand for these products. Advisors LOVE diversification. Especially in an emerging asset class such as crypto.”
Demand for the two crypto-spot ETFs could be crucial to BTC and ETH price trends. Currently, BlackRock’s IBIT is bolstering the BTC-spot ETF market. If diversification is the key, the pair could target new highs.
Bullish Outlook Tied to Strategic BTC Reserve Developments
Looking ahead, progress toward a US strategic BTC reserve (SBR) remains pivotal to BTC breaking new highs. However, the Trump administration will need Congress, the Federal Reserve, US Treasury Department to approve BTC as a strategic reserve asset.
If approved, the US government would become a BTC HODLER, mitigating oversupply risk. The US government has a 198,109 BTC stockpile ($19.13 billion), exposing the crypto market to potential sales.
However, until SBR progress accelerates, BTC price trends will hinge on ETF demand, US economic data, and Fed policy signals. A rebound in spot ETF market inflows, boosted by US data and Fed rate cut bets, may drive BTC above $100k. However, upbeat US data and ETF outflows could further pressure BTC, potentially dragging BTC below $90k.
Key US data in the week ahead include consumer confidence and jobless claims.
Dive deeper into the influence of spot ETF market flows on price action. Follow our analysis and forecasts to manage crypto-related risks.
Technical Analysis
Bitcoin Analysis
Despite the recent reversal, BTC remains above the 50-day and 200-day Exponential Moving Averages (EMA), affirming bullish price signals.
A break above December 5’s all-time high of $103,630 could enable the bulls to target $110k. A breakout from $110k could bring $120k into play.
Investors should consider trends in US economic indicators, US BTC-spot ETF market-related news, US government sales, and Trump-related news.
Conversely, a drop below $95,000 may signal a fall toward the $90,742 support level. A break below the $90,742 support level could enable the bears to target the $86,263 support level.
With a 49.34 14-day RSI reading, BTC could fall to the $90,742 support level before entering oversold territory (RSI below 30).
