DATA & FIGURES
The latest developments have led to a shift in sentiment, with MicroStrategy resuming bitcoin purchases, U.S. spot bitcoin ETFs returning to net inflows of $86 million, and oil prices continuing to fall. Bitcoin is currently trading around $66,300, up about a percent over the past 24 hours. The key signal for a new uptrend would be a decisive break above bitcoin's early May high near $83,000.
THE SCENARIO
The broader backdrop for crypto has improved, with easing regulatory barriers for crypto derivatives in the U.S. and growing institutional participation helping to support sentiment. Kraken has launched perpetual futures to U.S. clients, joining a list of companies to offer the newly-popular derivatives product onshore. Bitcoin has continued to attract treasury allocations from public companies seeking exposure to the asset.
DIRECT QUOTE
"Winter is over. Welcome back to crypto Spring." — Geoffrey Kendrick, Head of Digital Assets Research, Standard Chartered
BBN INSIGHT
The potential 'crypto spring' is supported by improving investor flows, corporate buying, and easing macroeconomic pressures. However, the key test remains a decisive break above bitcoin's early May high near $83,000. If this level is broken, it would strongly confirm a new uptrend, and bitcoin could be on its way to recovery.
MARKET REACTION
The price of bitcoin has responded positively to the news, currently trading around $66,300, up about a percent over the past 24 hours. The return to net inflows in U.S. spot bitcoin ETFs and the launch of perpetual futures by Kraken are also expected to support the price.