Wall Street Bitcoin & Ethereum Allocations Rise To Year Highs; What’s Next For BTC Price?

Wall Street has shifted its interest towards digital assets, notably Bitcoin and Ethereum, as per a recent report by CoinShares. The survey explores evolving cryptocurrency trends, preferences, and concerns, emphasizing changing sentiments on regulatory risks and a growing diversification trend. The surge in allocations prompts a closer look at its implications for the market and the potential trajectory of Bitcoin prices.

Wall Street’s Increasing Bet on Bitcoin and Ethereum

CoinShares’ Head of Research, James Butterfill, shared insights from the latest digital asset fund manager survey. An overwhelming 75% of respondents see Bitcoin and Ethereum as having the most compelling growth outlook. This bullish sentiment is reflected in the surge of digital assets’ weight in portfolios, climbing from 0.4% to 1.3%, marking the highest level since Q1 2023.

However, he also suggested that the regulatory concerns persist, noting a decline from 63% to 50% in fears related to a government ban and regulations. Interestingly, investors are shifting from firm opinions on Federal Reserve policy errors to a state of uncertainty.

Meanwhile, Bitcoin retains its stronghold as the digital asset with the most promising growth outlook, with 40% of respondents backing this projection. On the other hand, Ethereum faces a shift in sentiment, losing approximately 15 percentage points to alternative coins like Solana and Polkadot. Despite this, Bitcoin and Ethereum still command a combined 75% of responses, indicating their continued dominance.

The weighted average of digital assets in portfolios rising from 0.4% to 1.3% signifies a broader market trend toward increased allocations. Larger asset managers play a pivotal role in this shift, highlighting a strategic move toward digital assets, especially the more established ones.

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Quick 15 minute video on $BTC in which I go over both high and low timeframe PA, local levels of invalidation/interest, and more.

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Investor Behavior and Emerging Trends

Noteworthy is the growing trend of investors turning to digital assets for speculative purposes. However, recent price hikes have led to a perception shift, with fewer investors considering digital assets as good value. The demand surge is attributed to client needs for diversification, especially as equity and bond correlations reach all-time highs.

Despite concerns about regulation and volatility subsiding, issues surrounding custody and accessibility are gaining prominence. The recent approval of Spot Bitcoin ETFs by the SEC in the US has alleviated some regulatory concerns, but custody issues and accessibility worries persist among investors without digital assets in their portfolios.

Meanwhile, renowned analyst CredibleCrypto asserts that Bitcoin’s technical invalidation point is at 38.5k, suggesting a potential dip just below 40k. However, he emphasizes limited downside risk overall. Advocating for a broader perspective, he recommends concentrating on higher timeframes, indicating a buying opportunity during dips. Notably, the crucial point of invalidation remains at the low of 38.5k.

On the other hand, as reported by CoinGape Media earlier, the Bitcoin price has the potential to hit the $57,000 mark soon, amid a halving rally.

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