Bitcoin’s price actions were quite underwhelming for days but the substantial ETF flows as well as the positive US CPI numbers resulted in massive gains that propelled the cryptocurrency to a 3-week peak of over $66,000.

The landscape with the altcoins is quite similar, with most turning green on a daily scale. ETH is above $3,000, while SOL and NEAR have soared by double digits.

Bitcoin Skyrockets Above $66K

The primary digital asset slumped hard last Friday to just over $61,000 after failing to overcome the $64,000 level. It used the relatively quiet weekend to regain some traction and remained around $61,000.

The bulls initiated a notable price surge on Monday that drove bitcoin to just over $63,000. Although it failed to conquer that line at first, it went on the offensive once again yesterday after the US CPI numbers for April came out.

The fact that they met the expectations of 3.4% resulted in a jump toward $64,000. The positive inflows in spot BTC ETFs in the States started another rally that pushed the cryptocurrency to a 3-week high of around $66,500.

Despite losing some ground since then, bitcoin still trades above $66,000 now. Its market cap has soared past $1.3 trillion, while its dominance over the alts is close to 52%.

SOL, NEAR on a Roll

As it typically happens when BTC heads in one direction, so do most altcoins. Ethereum has reclaimed the $3,000 level after a 3.6% increase in the past day. Binance Coin is above $580 after gaining 3%. Similar increases are evident from XRP and DOGE.

Shiba Inu, Avalanche, Polkadot, Bitcoin Cash, and Cardano have surged by somewhere between 6-8%. However, the most impressive gains come from Solana and NEAR Protocol’s native token.

SOL is up by 13% and stands well above $160, while NEAR has skyrocketed by 17% and trades north of $8.1.

TON and PEPE are the only larger-cap alts with notable price declines on a daily scale now.

The total crypto market cap has added roughly $150 billion since yesterday’s low and is now above $2.5 trillion.

TL;DR

• Ethereum’s price recently surpassed $3,000, with analysts predicting further significant gains.
• Declining MVRV ratio, negative exchange netflow, and potential approval of a spot Ethereum ETF in the US could drive ETH’s value higher.

Is ETH Gearing up for an ATH?

The cryptocurrency market has experienced a significant uptrend in the past few days, with numerous digital assets rising to multi-week highs. Although not witnessing such a substantial increase, Ethereum (ETH) is also among the notable gainers.

Its price surpassed the $3,000 mark, representing a 4% increase on a daily scale. Numerous analysts believe this could be the starting point of a bull run that can take place in the near future.

The X user Michael van de Poppe is among the optimists. He claimed recently that ETH is on its way to reaching a higher timeframe support level. “The good times are there in a few weeks’ time,” he assumed.

CryptoYoddha was even more bullish, envisioning a price explosion toward the $10,000 milestone by the end of the year.

Last but not least, World of Charts argued that ETH has started breaking the “falling wedge consolidation” on a 12-hour timeframe. “Trend is already up and expecting continuation towards $4500 in coming weeks,” the analyst forecasted.

Observing Some Important Factors

One element signaling that ETH’s value could be on the verge of a rally is the Market Value to Realized Value (MVRV). It helps to identify if the asset is overvalued or undervalued. A high ratio suggests a market top, while a low one may indicate a good buying opportunity. The MVRV has been on a significant downfall since mid-March.

Another factor is ETH’s exchange netflow, which has been predominantly negative in the past month (according to CryptoQuant’s data). Shifting from centralized platforms towards self-custody methods is considered bullish since it reduces the immediate selling pressure.

Last but not least, ETH’s price may head north in case of the approval of a spot Ethereum ETF in the United States. However, such a green light may also lead to the same immediate “sell-the-news” event witnessed after the BTC ETF approvals in January.

Morgan Stanley, the sixth-largest banking firm in the United States, has invested over $269 million in a spot Bitcoin ETF, as disclosed in its recently published Form 13-F.

The Securities and Exchange Commission (SEC) filing revealed that the investment was made in Grayscale’s GBTC during the first quarter of 2024.

Morgan Stanley Joins Banks Investing in ETFs

Morgan Stanley’s recent investment positions it as one of the largest holders of GBTC. It closely follows Susquehanna International Group’s substantial $1.0 billion investment.

The firm is among several Global Systemically Important Banks (G-SIBs) that have publicly disclosed investments in spot Bitcoin ETFs. Other banks investing in the ETFs include the Royal Bank of Canada, JP Morgan Chase, Wells Fargo, BNP Paribas, and UBS.

These allocations were highlighted in the first-quarter 13F reporting deadline, the end of the initial period for investors to purchase most spot Bitcoin ETFs. According to Bitwise CIO Matt Hougan, approximately 700 professional firms have invested nearly $5 billion in spot Bitcoin ETFs by the May 15 deadline.

Hougan described this trend as representing a “historical scale of professional investor ownership.” He explained that this was similar to the launch of gold ETFs in 2004, which was reported as the most successful ETF launch.

Despite the increase in institutional capital, retail investments constitute a significant portion of the funds invested in spot Bitcoin ETFs. Notably, recent data shows that the total assets under management (AUM) are approximately $50 billion.

Growing Institutional Interest in Bitcoin ETFs

Several other firms have disclosed their investments in spot Bitcoin ETFs, highlighting the growing institutional interest in crypto assets.

On May 14, New York advisory firm Pine Ridge Advisers revealed a $205.8 million investment in spot Bitcoin ETFs. This investment comprises $83.2 million in BlackRock’s IBIT, $93.4 million in Fidelity’s FBTC, and $29.3 million in Bitwise’s BITB.

In addition, alternative asset manager Aristeia Capital LLC disclosed a substantial $163.4 million investment in IBIT on May 15. Similarly, Connecticut-based investment firm Graham Capital Management disclosed investments totaling $98.8 million in IBIT and $3.8 million in FBTC. Hedge fund manager Crcm LP also revealed a $96.6 million investment in IBIT.

New York-based hedge fund manager Boothbay Fund Management disclosed a significant $377 million exposure to spot Bitcoin ETFs. This investment includes $149.8 million in IBIT, $105.5 million in FBTC, $69.5 million in GBTC, and $52.3 million in BITB.

Furthermore, New York investment manager Fortress Investment Group LLC disclosed a $53.6 million investment in IBIT, adding to the growing list of institutional players entering the crypto space.