Following a market rebound on Friday, Bitcoin (BTC)  has since shown little price movement gaining by only 0.42% in the last day. The premier cryptocurrency currently hovers around $63,000 as investors continue to await the traditional bullish surge of  “Uptober”.  Commenting on BTC’s potential next movement, CryptoQuant analyst ShayanBTC has highlighted key price levels investors should look out for.

Bitcoin Must Overcome Major Resistance To Prevent Crash To $55,000 

In a Quictake post on Saturday, ShayanBTC shared key insights on the relationship between Bitcoin’s Realized Price Unspent Transaction Output (UTXO) Age Bands and potential market trends. Generally, the Realized Price UTXO Age Bands is an on-chain metric that provides insights into Bitcoin holders’ behavior. Specifically, it reveals the average price at which certain categories of BTC investors acquired their tokens.

According to ShayanBTC, the realized price for short-term holders of Bitcoin i.e. holders of BTC for three to six months, currently lies at $64,000 while long-term holders of Bitcoin i.e. for 6-12 months presently have a realized price of $55,000. The analyst explains that realized price levels usually serve as strong support as key support or resistance levels in the BTC market. This is usually because they represent the average cost basis for Bitcoin holders and often form psychological price points.

Based on BTC’s current price of around $63,000, the short-term holders’ realized price of $64,000 presents a pivotal resistance level, a triumphant breakout above which signals would indicate the continuation of the asset’s present upward trajectory. However, if BTC fails to break past $64,000 perhaps due to increased selling activity or macroeconomic factors, Shayan expects the asset to fall to around $55,000 i.e. the realized price level for long-term holders. 

Interestingly, Shayan’s observations are well reflected on Bitcoin’s daily chart where the premier cryptocurrency has consistently oscillated between $55,000 – $65,000 over the last two months. Should BTC break out of this range-bound pattern, it will need to surpass the resistance at $70,000, which could signal the start of a market bull run.

BTC Network Fees Up By 32%

In other news,  Bitcoin recorded $5 million in network fees, representing a 32.4% rise over the last week. According to on-chain analytics company, IntoTheBlock, this development indicates a heightened network activity despite calming market volatility.

At the time of writing, the crypto market leader trades at $62,786 reflecting gains of 2.13% and 9.08% in the last seven and thirty days respectively. Meanwhile, BTC’s daily trading volume is currently valued at $17.57 billion, following a 42.92% decline.

Featured image from The Economic Times, chart from Tradingview 

The Bitcoin vs Dollar debate has been a favorite topic among financial analysts, crypto enthusiasts, and the general investing public. As Bitcoin continues its erratic price action, even briefly hitting over $70k last March 2024, the question remains as relevant as ever. So, is Bitcoin a better store of value and hedge against inflation?

If we ask the experts, many agree that Bitcoin is far better than the US dollar and other fiat currencies. According to Anthony Pompliano of Professional Capital Management, Bitcoin is better since fiat currencies are more volatile, and it simplifies many investing principles.

Pompliano Pushes For Bitcoin

In a Fox News interview, Pompliano shared his thoughts on the ongoing Bitcoin-dollar debate. He said Bitcoin is in a better position since fiat currencies are more volatile, and the public is faced with its diminishing purchasing power.

Pompliano believes that Wall Street and the rest of traditional finance failed to see Bitcoin’s value. At the heart of Bitcoin’s advantage is the classic economic problem of scarcity— only 21 million Bitcoins are available, a scarce asset compared to fiat currencies that central banks can continue to print and issue.

Pompliano’s interview and continued debates come with a growing institutional interest in Bitcoin. After the US Securities and Exchange Commission (SEC) approved spot BTC ETFs on January 10th, 2024, there has been a growing interest and inflow of money into these funds. Months after the approval of the first 11 funds, interest in Bitcoin ETFs continues, helping boost the crypto’s price.

Bitcoin Vs Dollar: Anthony Pompliano Explains Why BTC Is Better Than Fiat Currencieshttps://t.co/1sG1aad8OX

— John Morgan (@johnmorganFL) October 20, 2024

Bitcoin: A Simple Yet Scarce Commodity

According to Pompliano, Bitcoin’s appeal and value lie in its simplicity of investing principles. Since there is a limited supply of Bitcoin, this can impact its future market value. Also, a problem for many traders and investors, according to Pompliano, is that they’re too focused on complex financial products like leverage and trading.

The problem with these complex yet popular instruments is that you must track prices and trade at the right time. However, with Bitcoin, users just need to buy and hold. In short, Bitcoin offers a long-term appreciation in value and a better hedge against inflation.

Deutsche Bank Analyst Sees BTC As ‘Digital Gold’

Bitcoin has been getting plenty of support from financial analysts. According to Marion Laboure, an analyst at Deutsche Bank Research, it can potentially become our ‘21st-century gold’. Laboure says Bitcoin’s and the cryptos’ market cap of over $1 trillion is too big to ignore.

Laboure adds that Bitcoin will continue to grow soon as a viable payment alternative, while fiat currencies’ share in transactions will fall. She adds that Bitcoin is a ‘digital gold,’ Ether, the second most popular coin, can be our next ‘digital silver.’

Featured image from Pexels, chart from TradingView

Last January 10th, 2024, the US Securities and Exchange Commission finally approved the Bitcoin ETF applications of 11 funds, including Fidelity, Grayscale, and Blackrock’s IBIT. Within a month, trading volume increased as more banks, funds, and individual traders got a share. One market participant that’s slowly boosting its holdings is Morgan Stanley.

In its recent 13F-HR/A filing with the SEC, Morgan Stanley declared $272 million worth of Bitcoin ETFs at the end of the third quarter. Although this seems like a sizeable investment, it only accounts for 2% of the total assets in management, now valued at $1.3 trillion.

Massive news! 🚨 Morgan Stanley, a $1.3 trillion asset manager, just disclosed $272 million in Bitcoin ETF holdings. This is a clear sign that institutional adoption is accelerating. As more major players like Morgan Stanley continue buying into Bitcoin, it’s creating… https://t.co/bkCt59bSrD

— Jimie (@Your_NLP_Coach) October 18, 2024

Morgan Stanley’s BTC Holdings Spread Over Blackrock, Ark21, Grayscale Funds

Morgan Stanley keeps its holdings in different baskets like a seasoned trader and investor. Many of its holdings are with Blackrock’s iShare Bitcoin Trust (IBIT). Management reported that it now owns 5.5 million shares of the BTC ETF, which it bought in the second quarter. Morgan Stanley’s holdings with Blackrock were worth $187.7 million at the time of the transaction but are now worth $209 million, or an increase of 10.2%.

The company also shared that it holds a sizable holding with Ark 21 Shares but has reduced its holdings with Grayscale. Initially, Morgan Stanley boasted holdings worth $270 million, but they’re now down to $148,000.

BTCUSD trading at $68,393 on the daily chart: TradingView.com

Morgan Stanley And Its Crypto-Friendly Strategy

Morgan Stanley is one of the top asset managers with a Bitcoin and crypto-friendly strategy. Although the company was late in investing in Bitcoin ETFs, it still managed to build one of the most significant holdings in the United States.

In August 2024, the company gave the go-signal to its managers to offer Bitcoin ETFs as an option for its wealthy customers. Considering its huge asset base, this was a significant move for the company. For example, if its manager allocates just 1% of the company’s assets to Bitcoin ETFs, it will create an inflow of $130 billion.

Bitcoin ETFs Continue Push

The SEC’s approval of spot ETFs was a game-changer for the industry. According to analyst Kripto Mevsimi, Bitcoin is now a more mature asset and is starting to become an integral part of the financial market.

The market continues to support Bitcoin ETFs, with impressive net flows in the last four days. Funds bought over $470 million worth of BTC yesterday, an improvement from Wednesday’s inflow. Again, IBIT leads the game with an inflow of $309 million. Also, ARKB notched an impressive day with a $100.2 million inflow. GBTC was also positive, getting $45.7 million yesterday.

Featured image from MoneyControl, chart from TradingView