Following news on multiply spot ETF requests, Bitcoin margin and futures markets display significant strength.
After a failed rally above $ 31,000 on June 23, Bitcoin has maintained the $30,000 support. level for the past three days.
Interestingly this happened while other assets like gold traded their lowest level in three months at $1910 on June 22 after peaking at 2,050 in early May.
This development has sparked interest amongst traders as many investors are positive that the price might surge even higher in the coming weeks.
Reason Behind the Recent Price Spike
Many fundamental crypto analysts have attributed the recent Bitcoin rally that leads to over a 21% gain in 11 days to BlackRock’s spot Bitcoin exchange-traded fund [ ETF] fillings.
But it has also been speculated that other events might have fueled the recent market gains.
For instance, Hong Kong Bank HSBC reportedly introduced its first cryptocurrency services using three listed crypto ETFs.
However, the ProShares bitcoin strategy ETF, a bitcoin futures fund, got its largest weekly inflow in a year at over $65 million, with its assets topping over $1 billion
Notably. it was the first BTC-linked ETF and one of the most popular among institutional investors in the United States.
READ ALSO: $26 Million of Do Kwon Freezed By Swiss Prosecutors after His Prison Sentence
But more importantly, the United States crypto regulatory environment may be enhancing after a period marked by sanctions and enforcement actions from the U.S. SEC targeted at exchanges allegedly operating as unregistered security brokers.
On June 25, Federal Reserve Governor Michelle Bowman insinuated that financial institutions had been left in a” supervisory void” in terms of emerging technologies, including digital assets.
Bowman added that policymakers have been relying on general but non-binding statements, leaving substantial uncertainty and imposing new business requirements after significant investments have been made.
Following this, a draft bill in the U.S. House of Representatives aims to prohibit the SEC from restricting digital assets trading platforms’ registration as a regulated alternative trading system.
As published on June 2, this proposal would allow such firms to offer digital commodities and stablecoin payments.
Bitcoin’s margin and futures metrics suggest bullishness
Let us dive into bitcoin derivatives metrics to get an insight into how professional traders are positioned amid positive news on improved regulations which might lead to sizable institutional inflow.
Generally, the margin market provides data into how professional traders are positioned in the market about how assets are borrowed and positions are leveraged in the market.
OKX, for instance, provides a margin-lending indicator based on the stablecoin/BTC ratio. By using this indicator, traders can increase their exposure by borrowing stablecoin to buy BTC.
However, bitcoin borrowers can only bet on the decline in the price of an altcoin to make a profit.
The chart above is a graphical representation of OKX trader’s margin-lending ratio bottomed at 17 on June 20 but has significantly improved over the last 4 days.
The movement indicates dominance of margin longs with a ratio to bullish stablecoin lending.
Bitcoin’s $30,000 support level still shows significant strength
Generally, Bitcoin bulls are optimistic that the price of bitcoin might surge in the coming weeks.
More long positions have been added using margin and futures markets backed by positive momentum from multiple spot ETF requests, large institutional inflows, and a more rational approach from the U.S. lawmakers.
As things unfold in the coming weeks Bitcoin bulls should have more advantage in sustaining price above the $30,000 region and probably soar higher.
