After hitting a five-week low last week, bitcoin’s price has reached its highest price in 10 days, and it continues to move toward its 200-day moving average of $48,000.
“Bitcoin held important cloud-based support near $40,000 and has generated an oversold ‘buy’ signal from the daily stochastics after a three-day rally, supporting a short-term bullish bias,” founder and managing partner of Fairlead Strategies Katie Stockton said in an email to Coindesk.
Digital assets in general have been trading in a tight range recently as cryptocurrencies have navigated the same hurdles that have been holding back mainstream financial markets. Though in theory, crypto trades independently of stocks and bonds, experts have seen correlation between cryptocurrencies and tech stocks. With markets facing interest rate hikes from the Federal Reserve and historically significant inflation, it might be easy to imagine investors shying away from risky, volatile assets like crypto.
However, there are numerous signs that now might be an excellent time to have exposure to the crypto space. Even as retail sentiment towards crypto appears to have dampened, institutional sentiment is on the rise. Germany’s Commerzbank has applied for a crypto license. Mikkel Morch, executive director at crypto/digital asset hedge fund ARK36, said, "We [are] now starting to see adoption even from some of the most conservative players in the banking field. These moves can be interpreted as the beginnings of a race within the traditional banking field to gain a competitive edge by being the first entity in its local market to offer crypto services. Inevitably, this will only speed up the adoption of crypto as a mainstream financial service.”
As cryptocurrencies move closer to mainstream adaptation, investors can kick the tires on VanEck’s suite of products that offer exposure. The VanEck Digital Transformation ETF (DAPP) centers on the digital infrastructure that makes cryptocurrencies possible, including exchanges and miners. The VanEck Digital Assets Mining ETF (DAM) puts a greater emphasis on miners and crypto equities. Meanwhile, the VanEck Bitcoin Strategy ETF (XBTF) offers a uniquely structured take on bitcoin futures that utilizes a C-corp status for greater long-term tax efficiency.
For more news, information, and strategy, visit the Crypto Channel.