By 06:57 ET (10:57 GMT), Bitcoin increased by 0.8% to $66,031.2, still down 2.8% for the week after dipping below $65,000 on Tuesday for the first time since May 16.
Crypto prices including Bitcoin are rangebound as investor enthusiasm for riskier assets has been dampened by the prospect of prolonged high U.S. borrowing costs.
Several Federal Reserve officials have stressed the need for further progress in controlling inflation, despite last week’s weaker-than-expected U.S. inflation data. As a result, the U.S. central bank now forecasts only one interest rate cut this year, down from the previous expectation of three cuts.
This narrative has bolstered the U.S. dollar, with the dollar index (DXY) rising 0.2% over the past five days. A stronger dollar typically reduces the appeal of Bitcoin, as it makes dollar-denominated assets more attractive compared to riskier investments like cryptocurrencies.
Near-term, BTC has the potential to rebound toward $67,000, according to analytics firm Glassnode. This threshold might present resistance, and breaking through it could set the stage for an even higher target of $69,500.
On the flip side, the $65,000 mark is viewed as a key psychological support level, which could be pivotal in maintaining investor confidence.
Trailing Bitcoin, most major altcoins also rose slightly on Thursday.
World no.2 token ETH/USD added 1.1% to $3,597.04, while Cardano climbed 1.4% and XRP rose 1%. In contrast, Solana dropped by 0.5%.
Among meme tokens, DOGE/USD edged up by 0.6%, and Investing.com Shiba Inu Index increased by 0.4%.
Earlier this week, Bernstein analysts hiked their Bitcoin price target to $200,000 from $150,000 “to reflect the positive surprise from Bitcoin ETF flows since launch.”
The firm argues that Bitcoin and crypto-related stocks are underrated and poised for significant institutional interest as regulatory concerns diminish.
“We remain convinced in our Bitcoin new cycle thesis,” Bernstein noted. “Bitcoin has been adopted by institutional investors, and global asset managers have seen some crypto success. For us, the next leg of demand should come from crypto bystanders.”
Bernstein analysts stress the potential of Bitcoin ETFs, noting a 150% surge in Bitcoin since BlackRock (NYSE:BLK) filed its Bitcoin ETF application.
The note also addresses skepticism from bears who argue ETF flows aren’t genuine, driven more by ‘cash & carry trade’ rather than ‘net long’ positions.
Bernstein sees this as a “trojan horse” for adoption, with investors likely to shift to ‘net long’ positions as ETF liquidity improves. While early allocations were retail-driven, they expect strong institutional growth, anticipating ETF approvals at major financial institutions by Q3/Q4.
“Tactically, low to mid $60Ks/high 50Ks (if we get there) should be interesting entry points,” Bernstein highlighted.
Source: Cryptocurrency - investing.com
