Speculation about the duration of the current run is endless, with Bitcoin now a stable news item even in the mainstream press. But what’s keeping the BTC price up? Is it simply the relentless slew of good news, or are there on-chain indicators that can predict future price moves?
Since retesting the $50,000 barrier in early March, the price of Bitcoin (BTC) has held pretty consistently above that level. Even a pullback in the last week of March couldn’t sustain, with bulls pushing the price back up toward a new all-time high close to $65,000.
The FOMO effect
The argument that good news is buoying the market is self-evident simply because it’s undeniable that we’ve seen a kind of FOMO snowball effect among institutions over recent months.
The bull run kicked off in the last quarter of 2020, and the fact that prices suddenly spiked in October amid news that PayPal was entering the crypto space cannot be ignored. Further bullish action followed when JPMorgan launched its long-awaited JPM coin.
This year, MicroStrategy went on an epic buying spree, accompanied by Tesla’s endorsement with a $1.5-billion investment. The big banks, including Goldman Sachs and Citigroup, expanding their service offerings to cryptocurrencies has added further credibility to the argument that crypto is taking its place as an established asset class. Most recently, the excitement of Coinbase’s listing on Nasdaq — the first of its kind in the crypto industry — has also played a part in ensuring that digital assets remain firmly on the global news agenda.
On a macro level, the ongoing push to get a Bitcoin ETF approved by United States regulators also provides further bullish sentiments. — although, in the view of one analyst, it could still be another two years before approval is forthcoming.
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While the theory that good news is propping up Bitcoin prices may not create a long-term bull case in and of itself, the market action has…