10x Research, a crypto research firm, recently warned that a sharp decline in Ethereum prices could hinder Bitcoin from reaching a sustainable new all-time high of over $83,000. According to their analysis shared with CryptoSlate on June 7, ETH has struggled compared to BTC, falling by 1.2% while BTC rose by more than 3%. The firm believes that Ethereum’s position could impact Bitcoin sentiment, as traders are more inclined to invest in BTC at the moment.
Furthermore, 10x Research predicted that demand for ETH exchange-traded funds (ETFs) may not meet expectations. They noted that positioning in Ether futures is already stretched and that traders prefer to buy Bitcoin exposure, with ETH futures positioning lagging behind. The firm emphasized the potential impact of SEC Chairman Gary Gensler’s remarks on the approval timeline for ETH ETFs, suggesting that it might take some time before they are authorized.
Despite the challenges posed by Ethereum, 10x Research remains bullish on Bitcoin’s prospects, forecasting a new all-time high of $83,000 in the near future. CEO Markus Thielen highlighted a key technical pattern that suggests a rally towards this target, with the resistance likely to break soon. The firm attributed its positive outlook to recent global economic developments, such as interest rate cuts in various countries and a weakening US employment market, which could support Bitcoin’s price increase.
To achieve the projected new all-time high, 10x Research estimated that Bitcoin would require over $13 billion in inflows across all sectors. This includes investments from Bitcoin ETFs, which have accounted for a significant portion of total Bitcoin flow. The firm explained that inflows of $800 million or $8 billion are needed to raise Bitcoin’s price by 1% and 10%, respectively, emphasizing the importance of consistent inflows to propel the market to new highs.
In conclusion, 10x Research’s analysis suggests that while Ethereum’s performance may impact Bitcoin sentiment, the leading cryptocurrency remains poised for a significant rally towards a new all-time high. The firm’s bullish outlook is supported by global economic trends and the potential for increased inflows across different sectors. As investors look towards the future of the crypto market, monitoring key technical patterns and market dynamics will be crucial in navigating the evolving landscape.
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