Several Bitcoin exchange-traded funds (ETFs) including the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy ETF (BTF) jumped 5% in pre-market hours on Tuesday.
A significant increase in Bitcoin ETF prices usually indicates institutional buying. Institutional investors typically use Bitcoin ETFs in anticipation of the upcoming rise in the price of BTC.
Initial signs of institutional buying of Bitcoin are being recorded again after weeks of outflows since March. The year began with institutional investors, miners, and retail investors entering the market to buy BTC and other cryptocurrencies. However, the rise in the price of BTC is slightly hindered due to regulatory obstacles, legal actions and macro factors.
But since President Joe Biden and Republicans reached a two-year deal to raise the debt ceiling, the Bitcoin market and the stock market reacted positively as a possible financial crisis was averted. Biden and House Speaker Kevin McCarthy remain optimistic of getting the deal done days before the US Treasury runs out of money.
As a result, Bitcoin, technology and crypto stocks began to rise as the agreement would limit some government spending and eliminate the 30% tax on Bitcoin mining.
In pre-market on May 30, the Bitcoin ProShares Bitcoin Strategy ETF (BITO) jumped 5% to $16.19 and the Valkyrie Bitcoin Strategy ETF (BTF) also rose 5% to $10.87.
The 10-year US Treasury yield fell to 3.73% on Tuesday after rising last week. The US dollar index (DXY) fell below 104 after hitting 104.50 today. The price of BTC jumped 2% in the last 24 hours, with the price currently trading at $27,968. New institutional buying is likely to push the price of BTC above $30,000.
