Why Bitcoin Might Not Hit A New All-Time High This Month: 10x Research

Bitcoin BTC/USD enthusiasts hoping for a new all-time high this month may need to temper their expectations, according to the latest 10x Research report.

What Happenedb: Despite a slew of positive macroeconomic indicators, one significant risk could derail Bitcoin’s ascent, states the report by Markus Thielen from 10x Research.

It highlights that macroeconomic data, including consumer spending, GDP, employment, and manufacturing figures, indicate a slowing US economy and cooling inflation—factors typically bullish for Bitcoin.

However, Thielen warns that a critical overhanging risk could prevent Bitcoin from reaching new heights in June.

Central to this risk is the performance and market behavior of Ethereum.

Despite Ethereum‘s ETH/USD market capitalization increasing by 22% to $454 billion last month, its generated fees have plummeted by 33% to just $128 million.

This disconnect, combined with a fragile technical setup, suggests Ethereum could experience significant price pressure.

Thielen notes, “Plenty of new long positions have been entered that are now at or below breakeven levels,” which could lead to a substantial sell-off if these positions are liquidated.

Also Read: Bitcoin Spot ETFs Record $887M Inflow On Wednesday, Second-Highest Ever

Moreover, Ethereum's seasonal trends are not favorable.

Historically, June is Ethereum’s second-worst month, with average returns of -7%.

This, coupled with aggressive futures positioning and potential disappointment in ETF net inflows, paints a bleak picture for Ethereum.

If Ethereum’s price drops below critical support levels, it could drag Bitcoin down with it, preventing a new all-time high.

In light of these challenges, Thielen suggests that the safest strategy might be to remain bullish on Bitcoin while being cautious about Ethereum.

He proposes strategies like selling at-the-money Ethereum calls and buying Bitcoin calls to hedge against potential downside risks.

What’s Next: As the digital asset community continues to navigate these developments, the upcoming Benzinga Future of Digital Assets event on Nov. 19 will provide a vital platform for deeper discussions on these and other critical issues facing the industry.

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