Bitcoin Futures suddenly spiked on February 8th, reaching the highest level of the year after a nearly 8% increase.
The move came unexpectedly, and it allowed Bitcoin (BTC) to surge from $3,393 to $3,662.98. The new development has also sparked new speculations regarding Bitcoin ETFs as well, with the US SEC commissioner saying that ETFs might eventually happen.
According to Brian Stutland of the Equity Armor Investments, this might be only a start and an indication that a bigger rally is about to happen. He believes that, if Bitcoin ETFs appear on the market, portfolio managers could allocate to Bitcoin in their models. If there is enough demand for the ETFs, and if investors do actually want to hold them, this might have a significant impact on Bitcoin in the long-run.
Stutland also believes that this could be what is currently driving the Bitcoin price, which surged right after the demand for Bitcoin Futures started growing. Stutland pointed out that nothing is certain at this point, and that a lot has yet to happen in order for an actually significant rally to arrive, but the current development could be the start of something new.
Bitcoin might go above $4,000
Besides, Stutland seems to believe that Bitcoin may have found a bottom at around $3,500, which might allow it to push up and possibly breach the $4,000 resistance.
TJM Institutional Services’ Jim Iuorio also commented, stating that current charts show the “blend of positioning and technicals.” He pointed out that the crypto market saw a lot of shorts since the price drop on November 14th.
Iuorio also confirms that Stutland’s prediction about BTC price breaching $4,000 might be correct, although he was not convinced that it is a long-term increase unless the price breaches this barrier, and continues going up a little further at least.
Image courtesy of Pixabay.