The main reason for Bitcoin’s rise to around $63,000 is growing demand from institutional investors. In a ForkLog comment, Yuri Mazur, head of data analytics at the crypto broker CEX.IO Broker, said.
He noted that on April 8, Liberty Mutual and Starr Insurance invested $100 million in the New York Digital Investment Group (NYDIG) investment fund. In March, this platform received a total of $200 million from financial giants MassMutual, Morgan Stanley and other investors.
On April 9, the American alternative investment management firm Millennium, with $48 billion in assets, also invested in Bitcoin via the Grayscale Bitcoin Trust. The amount of the investment was not disclosed, but the deal itself was a significant catalyst for Bitcoin’s price, the analyst says.
“The technical factor was a contracting triangle on the daily time frame, the formation of which began on March 14. The gradual narrowing of the BTC/USD trading range was driving pressure from buyers toward the upper boundary of the figure around $59,950,” he said.
CEX.IO expects Bitcoin to continue rising to $66,360 during April.
“This will be the 3.618 Fibonacci retracement level on the weekly time frame. At this level, consolidation should be expected,” added Yuri Mazur.
In the context of Ethereum, a continued rise to $2,342 is expected in the medium term.
“This level corresponds to the 1.618 Fibonacci level on the weekly time frame. Bitcoin and DeFi market dynamics will significantly influence ETH/USD’s market movement,” the expert says.
Back in late March, Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, said Bitcoin was transforming into a reserve asset with low risk and predicted its rise to $400,000.
In early April, ARK Invest analysts said that in the coming years Bitcoin would surpass the capitalization of gold at $10 trillion and become the primary financial instrument.
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