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Bitcoin is set to hit a new all-time high next week, but Ethereum is holding it back

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Crypto research firm 10x Research has warned of a sharp drop in price Ethereum prices may prevent Bitcoin from reaching a new sustainable all-time high of more than $83,000, according to a June 7 analysis shared with CryptoSlate.

Over the past week, the price of ETH has struggled significantly compared to the price of Bitcoin. Over the period, the second-largest digital asset fell by around 1.2%, while the price of BTC rose by more than 3%. Although not explicitly explained in the note, 10x Research believes that Ethereum could hold back Bitcoin from a sentiment perspective.

10x Research, citing Ethereum’s future position, noted that traders were more willing to bet on BTC. Additionally, the firm predicted that demand for ETH exchange-traded funds (ETFs) would be lower than expected.

He has declared:

“Ether futures positioning is already at its limit and, as SEC Gary Gensler said this week, it is it may take some time until such ETH ETFs (S-1) are approved. Rising ETH futures positioning lagged this week at $0.3 billion as traders prefer to buy exposure to Bitcoin at this point, [recording] $2.2 billion. The numbers speak for themselves.”

How BTC can reach new ATHs

Meanwhile, the firm believes that Bitcoin could soon reach a new all-time high of $83,000 if it breaks a key technical pattern as early as today, June 7, or by Wednesday, June 12.

Markus Thielen, CEO of 10x Research, said:

“It is only a matter of time before Bitcoin hits a new all-time high. The head and shoulders formation indicates an upcoming rally towards $83,000, with a probable break of the resistance line in the coming days.

The firm attributed its bullish outlook to recent global economic activities, including interest rate cuts in Canada, Denmark and Europe. The forecast also considers a weaker US labor market and a potential decline in inflation as factors supporting the new ATH.

10x Research further explained that it typically takes around $800 million or $8 billion in inflows to increase the price of Bitcoin by 1% and 10% respectively. These inflows come from various sectors, including Bitcoin ETFs, which recently accounted for 35% of the total Bitcoin flow.

So, to achieve a 5% weekly Bitcoin rally, the market would need $4.2 billion in inflows Spot Bitcoin ETF seeing $1.7 billion. However, to reach its new projected all-time high of $83,000, 10x Research predicts that Bitcoin will require over $13 billion in inflows across all sectors. He added:

“A breakout of the $71,600 trend line will naturally result in more upside buying across more products, but $13 billion [in inflows] requires some commitment. However, we believe this is possible as a weaker US labor market (unemployment rate at 4.0%) and lower inflation data next week (3.3%) will likely provide the macro backdrop for new all-time highs ”.

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