Bitcoin Remains Supported Above the $90,000 Level

Bitcoin is trading around the $90,000 level and bulls remain in control at this level. 

BTCUSD - Daily Chart

BTCUSD – Daily Chart 

The price of BTC surged through the resistance at the all-time high of $73,742 and now trades around $90,000. No major selling has appeared at this level, but without any change in sentiment, sellers would be fearful of taking a major position against the trend. 

Some major investment firms have been adding Bitcoin to their portfolios. Millennium Management, Capula Management, and Tudor Investment have increased their exposure to US spot bitcoin exchange-traded funds in the third quarter, according to securities filings. 

The big driver of the recent rally has been Donald Trump’s election win and his ally Elon Musk has been showing his support for a crypto-friendly Treasury secretary in Howard Lutnick. 

Following the election, some hedge funds have been taking advantage of a price difference between spot bitcoin and its derivatives in the futures market in a leveraged trade, according to analysts. 

“Hedge funds are harvesting that spread. It creates a very tactical, opportunistic trade,” said Gabe Selby, head of research at Kraken’s CF Benchmarks. “It has an uncorrelated return”. 

The so-called bitcoin basis trade, is where investors buy spot bitcoin or ETFs, and short the cryptocurrency futures, which have been trading at higher prices this year. The gap widened after the election result and reached 17%. That has since reduced to 12% but it is a big reason why BTC has ramped up in recent weeks and is a risk for any negative news. 

Millennium more than doubled its number of shares in iShares Bitcoin Trust to 23.5 million shares, worth $849 million. The fund also increased its positions in ARK 21Shares Bitcoin and Bitwise Bitcoin. The New York-based hedge fund ended September with $1.7 billion in crypto ETFs, including spot bitcoin and ethereum funds. 

Hedge fund legend and billionaire, Paul Tudor Jones, has been a BTC supporter and his fund increased its exposure to iShares Bitcoin Trust fund, increasing its number of shares by five times, to 4.4 million. 

Bitcoin’s rally has been impressive but there is a big risk overhanging the current price level if investment funds back away. Much of the Trump-related price surge is also speculation as no official announcement has been made on using the cryptocurrency.

Recent News
Start Trading Now!

Try our demo account for free to learn trading. When you’re ready, switch to the live account and start trading for real.

Popular posts

ATFX

ATFX UK (AT Global Markets (UK) Ltd.) focuses on developing institutional business and professional investors and does not accept retail clients under its UK Financial Conduct Authority (FCA) license.

For professional client applications, please contact [email protected].

ATFX

Restrictions on Use

Products and Services on this page are not suitable for MENA residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

ATFX

🌍 Welcome to ATFX!

To provide you with the best trading experience in Iraq, please visit our localized website:

There, you’ll find all products, services, and contact information tailored specifically for you. Thank you for choosing ATFX!

ATFX

Restrictions on Use

Products and Services on this website https://www.atfx.com/en-ae/ are not suitable
in your country. Such information and materials should not be regarded as or
constitute a distribution, an offer, or a solicitation to buy or sell any investments.
Please visit https://www.atfx.com/en/ to proceed.

ATFX

使用限制

本网站的产品及服务不适合英国居民。网站内部的信息和素材不应被视为分销,要约,买入或卖出任何投资产品。请继续访问 https://www.atfx.com/en/

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not available for Hong Kong investors and not related to any corporation licensed by the Securities and Futures Commission in Hong Kong.

All the information and materials posted on this website should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制:本網站的產品及服務不適用於香港投資者及與任何香港證監會持牌公司無關。

網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://www.atfxconnect.com/