Bitcoin hit a new all-time high the following week, but Ethereum held it back.
Cryptocurrency research firm 10x Research warned that a sharp decline in the price of Ethereum could prevent Bitcoin from reaching sustainable all-time highs above $83,000, according to a June 7 analysis. CryptoSlate.
Over the past week, the price of ETH has struggled considerably compared to the price of Bitcoin. The second-largest digital asset fell about 1.2% during the period, while the price of BTC rose more than 3%. Although not explicitly stated in the note, 10x Research believes that Ethereum could suppress Bitcoin from a sentiment perspective.
Citing Ethereum’s future position, 10x Research noted that traders are more willing to invest in BTC. The company also predicted that demand for its ETH exchange-traded fund (ETF) would fall short of expectations.
It said:
“Positioning in Ether futures has already expanded, and as SEC Gary Gensler said this week, it may take some time before a corresponding (S-1) ETH ETF is approved. ETH’s futures positioning growth of $2.2 billion lagged by $300 million this week as traders prefer to buy Bitcoin exposure at this point. “The numbers speak for themselves.”
How BTC will reach a new ATH
Meanwhile, the firm believes Bitcoin could soon hit an all-time high of $83,000 if it breaks a key technical pattern as early as June 7 or Wednesday, June 12.
Markus Thielen, CEO of 10x Research, said:
“It’s only a matter of time before Bitcoin hits an all-time high. The head and shoulders pattern indicates an imminent rally towards $83,000, with resistance likely to be broken within a few days.”
The company said its optimistic outlook was due to recent global economic activity, including interest rate cuts in Canada, Denmark and Europe. The forecast also considers a weakening US job market and the possibility of lower inflation as factors supporting the new ATH.
10x Research explained that it typically takes inflows of around $800 million or $8 billion to increase the price of Bitcoin by 1% and 10% respectively. These inflows come from a variety of sectors, including Bitcoin ETFs, which recently accounted for 35% of total Bitcoin flows.
So, to achieve a 5% weekly Bitcoin rally, we would need $4.2 billion in inflows into the market, or $1.7 billion for a Bitcoin spot ETF. However, 10x Research estimates that Bitcoin will need inflows of more than $13 billion across all sectors to reach its all-time high of $83,000. It added:
“A break above the $71,600 trend line would naturally lead to more upside across multiple products, but $13 billion (inflows) would require significant effort. Nonetheless, we believe this is possible as the weakening US job market (unemployment rate of 4.0%) and lower inflation data next week (3.3%) are likely to provide the macro backdrop for a new all-time high.”
