Bitcoin Traders Expect Prices to Hit $74K Highs as Selling Pressure Eases

Bullish sentiment for riskier assets following soft inflation figures could propel bitcoin (BTC) prices toward the $74,000 mark in the coming days as institutional demand continues to grow, Singapore-based QCP Capital said in a note early Thursday.

The softer-than-expected U.S. Consumer Price Index (CPI) rose 0.3% versus 0.4% in March amid economist forecasts for 0.4%, triggering a breakout for BTC. The asset regained the $66,000 mark for the first time since April and posted its biggest single-day gain since March.

Such a move, coupled with demand from traditional finance, could see bitcoin regaining its March record of $73,700.

“We expect bullish momentum here that could take us back to the highs of nearly $74,000,” QCP traders said. “The desk saw sizeable buyers of $100K-$120k BTC Calls for Dec 2024 on this move higher in spot.”

“Institutional demand for bitcoin continues to grow, with large asset managers Millennium and Schonfeld investing approximately 3% and 2% of their AUM into the BTC spot ETF,” they added.

Multiple filings on Wednesday showed that several big-name funds, such as Millenium Management and Elliot Capital, held millions worth of bitcoin ETFs in their portfolios.

Meanwhile, some analysts say the selling pressure on bitcoin appears to have eased off, citing on-chain and exchange data.

“Short-term Bitcoin holders are selling at basically zero profit and traders are depleting their unrealized profits in the last few months,” CryptoQuant analysts shared in a Thursday report. “Bitcoin balances at OTC desks stabilizing, which suggests there is less Bitcoin supply coming into the market to sell via these entities.”

The firm defines short-term traders as addresses that hold bitcoin for less than 155 days and are likely to capitalize on short-term price movements.

A breakout in bitcoin comes after weeks of low volatility. Since March, the market has been range-bound between $60,000 and $70,000, with the halving event in April not providing the expected boost due to a general lack of market catalysts, traders have previously said.

Higher risk appetite for token bets showed signs of beginning earlier this week after an X post by retail trader Keith Gill sent some meme stocks and meme coins surging.

Gill's online persona and investment strategies contributed to a short squeeze on video game retailer GameStop’s stock in 2021, and his first post on social application X in three years was considered by some to be a sign of market volatility in the months ahead.