Home etftrends.com Bitcoin Could Be in for Big Things in June

Bitcoin Could Be in for Big Things in June

Bitcoin, the largest cryptocurrency by market value, traded lower on May 31. But overall, the fifth month of the year was kind to the digital asset. And some crypto experts believe more upside could be in store in June.

Should bitcoin build on what’s already a jaw-dropping year-to-date ascent this month, some equity-based, crypto-correlated ETFs could benefit. The actively managed Amplify Transformational Data Sharing ETF (BLOK) is one such fund. Confirming its leverage to bitcoin’s price action, BLOK gained 8.45% in May.

That’s an impressive one-month showing for any ETF. But it doesn’t imply near-term upside for the fund is limited. BLOK is residing 11% below its 52-week high. So it’s not a stretch to believe that an extension of bitcoin’s bullishness could carry the ETF back to those levels or beyond. June could prove instrumental in determining how BLOK performs over the remainder of the year.

Data Dump Could Set June Tone for BLOK, Bitcoin

This week brings a spate of economic data reports. Some of them could go a long way toward determining if bitcoin threatens its May lows or makes a run toward the all-time highs notched in March.

“(This) week should bring a bit more clarity to the U.S. economic picture thanks to Monday’s national PMI report and Friday’s national employment report. Confirmation of softening economic conditions, and with those improved prospects for lower interest rates, might prove to be the catalyst for bitcoin’s attempt at breaching its all time high above $73,000 set in March. Strong economic data, however, could mean a retest of the May lows,” reported Stephen Alpher for CoinDesk.

Bitcoin’s technical outlook could also be pivotal in determining how crypto-related equities and BLOK perform this month. The digital currency resided around $67,400 late Friday. Some technical analysts believe a move to $72,000 is essential to shake out short sellers. Should bitcoin get there, a retest of the all-time highs and perhaps a move to $75,000 could be in the offing.

“From the technical perspective, Bitcoin’s ability to reach $75,000 comes from its prevailing symmetrical triangle pattern, characterized by the price consolidating between two converging trendlines connecting a series of sequential peaks and troughs,” noted Yashu Gola of Cointelegraph.

In what could prove to be positive news for bitcoin and BLOK are data suggesting more bitcoin investors are buying and holding the cryptocurrency, rather than frequently trading in and out of it. That could be the result of spot bitcoin ETFs gaining more assets. Regardless of the reason, bitcoin is being held for longer periods of time and that could benefit some BLOK holdings.

For more news, information, and analysis, visit the Crypto Channel.

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