As of late Monday, bitcoin had gained more than 5% over the past week. It traded above $54,000 for the first time since December 2021. Those are bullish signs to be sure. And those signals are prompting some market observers to speculate that the largest cryptocurrency has more upside ahead.
Should that materialize, ETFs like the Amplify Transformational Data Sharing ETF (BLOK) stand to benefit. The fund is an equity-based one, but many of the stocks held by at are crypto-correlated, meaning BLOK can be responsive to cryptocurrencies’ price action.
That was on display on Monday when the Amplify ETF surged more than 7% as bitcoin rallied. True, one day does not make a trend, but consider the following: Bitcoin has climbed over the past month and BLOK has proven responsive, gaining 27.15% for the month, ending February 26.
Betting on BLOK as Bitcoin Highs Linger
At $54,000, bitcoin resides about $15,000 away from its all-time highs. Should the digital currency get there, it could bring assets such as BLOK along for the ride. Between here and there, some technical analysts believe the cryptocurrency could encounter resistance at $56,400 and again at $64,900.
Assuming those price points are vanquished, a blow-off top could arrive in which bitcoin surges to fresh highs. There’s a lot of moving parts there, but if all the boxes are checked, BLOK could benefit.
“Bitcoin has positive long-term momentum per our trend-following indicators, and there are no overbought ‘sell’ signals on the monthly chart,” observed Katie Stockton of Fairlead Strategies in a recent note to clients.
Asking for bitcoin and BLOK to post big near-term upside may be asking a lot at this juncture. But some analysts believe that’s exactly what’s in store. For example, research firm Matrixport believes bitcoin could ascend to $64,000 as soon as next month.
“Historically, Bitcoin has also tended to rally into the halving, even though the last halving cycle was heavily influenced by the post-COVID-19 stimulus injections of the various governments worldwide,” noted the research firm.
Plus, there’s the following endorsement from MicroStrategy (NASDAQ: MSTR) CEO Michael Saylor. That stock is one of the largest holdings in BLOK.
“MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin,” he wrote in a post on X (formerly Twitter) on Monday.
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