ETF market developments fuel bitcoin's renewed upswing

Bitcoin quotes endured a five-day losing streak, retreating more than 5% from last week's peak. However, the flagship cryptocurrency rebounded yesterday with a 4% surge. Market participants may now anticipate further upside toward the 110 000 level, with a potential test of May's highs if momentum holds. Recent developments are fueling increased buyer activity in BTCUSD.

On Monday, Trump Media & Technology Group Corp. filed an application with the US Securities and Exchange Commission (SEC) for a new exchange-traded fund. The proposed Truth Social bitcoin and Ethereum ETF would provide investors with simplified exposure to the two largest digital assets, complementing a separate bitcoin-only fund filed two weeks prior. This move advances Donald Trump’s pro-cryptocurrency political agenda.

According to CoinShares, the new ETFs stand a strong chance of attracting substantial capital inflows. Traders are currently favoring crypto investments, with bitcoin ETFs alone adding $1.3 billion in assets last week. The largest of these funds, iShares bitcoin Trust, now boasts over $70 billion in assets. The main thing is that this trend is being driven not just by retail investors, but also by institutional players.

Glassnode reports, large corporations are responsible for the majority of investments in bitcoin. Notably, most of these companies don’t operate primarily in the crypto sector, they use digital assets solely to diversify their investment portfolios. Additionally, smaller firms across various industries are increasingly announcing bitcoin purchases to attract publicity. Current US policies are further amplifying this trend, boosting BTCUSD’s appeal among investors.

The Stochastic indicator lines have turned upward, crossed, and generated a confirmed buy signal for Bitcoin. The bulls' nearest target now stands at the psychological 110 000 level.

Consider the following trading strategy:

Buy BTCUSD at the current price. Take profit – 110000. Stop loss – 104800.