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Cryptocurrency research firm 10x Research warned that a sharp drop in ethereum prices could prevent bitcoin from reaching a new sustainable all-time high above $83,000, according to a June 7 analysis shared with 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%. While not explicitly explained in the note, 10x Research believes ethereum could hold bitcoin back from a sentiment perspective.
10x Research, citing ethereum's future position, noted that traders were more willing to bet on btc. Furthermore, the company predicted that demand for eth exchange-traded funds (ETFs) would not live up to expectations.
He declared:
“Ether futures positioning is already stretched thin and, as the SEC's Gary Gensler said this week, it could be a while before those eth ETFs (S-1) are approved. The increase in futures positioning in eth has been delayed this week by $0.3 billion, as traders prefer to buy exposure to bitcoin at this point, (recording) $2.2 billion. The numbers speak for themselves.”
How btc can reach a new ATH
Meanwhile, the company believes that bitcoin could soon reach a new all-time high of $83,000 if it breaks a key technical pattern as soon as today, June 7, or before Wednesday, June 12.
Markus Thielen, CEO of 10x Research, said:
“It is only a matter of time until bitcoin reaches a new all-time high. The head and shoulders formation indicates a rally towards $83,000 soon, and the resistance line is likely to be broken in the coming days.”
The firm attributed its bullish outlook to recent global economic activities, including interest rate cuts in Canada, Denmark and Europe. The prediction also considers a weaker US labor market and a possible decline in inflation as factors supporting the new ATH.
10x Research further explained that it typically takes around $800 million or $8 billion in inflows to increase the price of bitcoin by 1% and 10%, respectively. These inflows come from various sectors, including bitcoin ETFs, which recently accounted for 35% of total bitcoin flow.
Therefore, to achieve a 5% weekly bitcoin rally, the market would need $4.2 billion in inflows, with bitcoin spot ETFs getting $1.7 billion. However, to reach its new projected all-time high of $83,000, 10x Research expects bitcoin to require more than $13 billion in inflows across all sectors. He added:
“A break above the $71,600 trend line will naturally result in more upside buying across multiple products, but $13 billion (in inflows) requires quite a bit of commitment. However, we believe this is possible as a weaker US labor market (4.0% unemployment rate) and lower inflation data next week (3.3%) will likely provide the macro backdrop for new all-time highs. ”.
