According to Ryan Lee, Chief Analyst at Bitget Research, the analysis of the current price of Bitcoin in USD suggests that June could represent a positive turning point.
Lee bases his prediction on two key factors: the net flows of ETFs on BTC and the market capitalization of stablecoins.
Summary
Short-term analysis of Bitcoin price in USD: influencing factors
1. Net Flows of BTC ETFs
One of the main indicators for understanding the future trend of the price of BTC is represented by the net flows of spot Bitcoin ETFs. In the month of April, the data showed a trend of significant net outflows: out of 23 trading days, 14 recorded net outflows.
This phenomenon has contributed to the disappointing performance of Bitcoin in the month of April, marking a downward pressure on prices.
However, with the beginning of May, the data started to show a trend reversal. Lee highlights how, recently, the flows of BTC ETFs have mainly recorded “large inflows and small outflows”.
This change suggests that the downward pressure on Bitcoin prices, caused by the sale of ETFs, could be coming to an end. If this trend of net inflows continues throughout the month of May, Bitcoin could gain the necessary momentum for a significant rebound in the month of June.
2. Market Capitalization of Stablecoin
Another crucial indicator analyzed by Lee is the market capitalization of stablecoin.
Despite the cryptocurrency market experiencing a downturn from March to early May, a continuous increase in the market capitalization of stablecoins has been observed.
From 145 billion dollars in mid-March, the total market capitalization of stablecoins has gradually risen to the current 160 billion dollars. This increase indicates abundant liquidity in the market.
In parallel, during the same period, the overall market capitalization of the cryptocurrency market decreased, and the overall leverage ratio was significantly reduced.
Questo contesto implica che, con l’aumento della leva finanziaria disponibile nel mercato, ci potrebbero essere ulteriori aumenti nei prezzi degli asset in futuro.
Prospects for June
Combining these factors, Lee predicts that the trend of Bitcoin for the month of June will be better compared to that of May.
While the expected price range remains between $64,000 and $75,000, similar to May, the nature of the swings will be different. While May was characterized by bear swings, June should see bull swings.
This analysis is based on a series of macroeconomic assumptions and an in-depth technical analysis of recent market movements. The recovery of inflows into BTC ETFs suggests that investors are returning to accumulate Bitcoin, a positive signal for the market.
At the same time, the increase in the market capitalization of stablecoin indicates that investors have liquidity ready to be invested, which could further push Bitcoin prices upwards.
Despite the optimistic forecasts, it is important to consider the risks associated with these predictions. The cryptocurrency market is known for its volatility and sensitivity to unpredictable external events, such as government regulations or changes in global economic policies.
Furthermore, the evolution of ETF flows on BTC and the stability of the market capitalization of stablecoins remain critical factors to monitor closely.
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“`In conclusion, while Ryan Lee’s analyses provide an encouraging outlook for the month of June, investors must remain vigilant and ready to adapt to market changes.
The combination of careful data analysis and a flexible investment strategy will be essential to navigate uncertainty and seize opportunities in the Bitcoin market in the coming months.
