After a major crypto rebound in the past 24 hours, Bitcoin’s (BTC) price closed above the crucial support/resistance level of around $66k for the first time since late July. Bitcoin price pumped more than 5 percent in the last 24 hours to trade at about $65,980 on Tuesday, October 15, during the early Asian session.
As a result, the total crypto market cap surged over 4 percent to hover above $2.4 trillion at the time of this writing. The notable crypto rebound resulted in the forced liquidation of more than $245 million from leveraged traders mostly involving short traders.
Institutional investors Are the Major Forces Behind Bitcoin’s Rebound
Amid the recent spike in major stock indexes led by the S&P 500, the confidence in Bitcoin as an asset class has significantly increased, especially among institutional investors. According to BlackRock’s CEO Larry Fink, Bitcoin is an asset in its category and its mainstream adoption curve will not be impacted by the presidential candidate.
Fink believes that Bitcoin’s market cap could scale to as high as the housing market, which is currently over $50 trillion.
As a result, institutional investors – led by Japan’s Metaplanet Inc. (Tokyo: 3350) and MicroStrategy Inc. (NASDAQ: MSTR) – have doubled down on the Bitcoin adoption strategy to hedge against fiat devaluation.
Earlier today, Metaplanet announced that it had purchased an additional 106.977 Bitcoins, worth ¥1 billion about $6.69 million. As a result, Metaplanet now holds 855.478 Bitcoins, which has significantly improved its stock market performance in recent years.
Meanwhile, the US spot BTC ETFs registered a net cash inflow of more than half a billion on Monday after recording an impressive inflow on Friday last week. Fidelity’s FBTC and Bitwise BITB registered a net cash inflow of over $239 million and $100 million respectively.
What Next for Bitcoin Price?
According to a popular and well-seasoned trader Peter Brandt, Bitcoin’s price must clear the hurdles around July’s peak of above $68,224 to ensure a bullish breakout towards a new all-time high in the near term. The next few weekly closes will be crucial for the midterm Bitcoin price action in the long haul.
Furthermore, a retrace below $63k in the near term will invalidate the ongoing bullish sentiment and set a precedent for a mid-term bearish outlook.
