up to $66,000, but sentiment remains weak amid rate jitters By Investing.com

The price rose marginally on Thursday as investor sentiment remains weak amid continued concerns over prolonged high interest rates and global economic health.

At 06:57 ET (10:57 GMT), Bitcoin rose 0.8% to $66,031.2, still down 2.8% on the week after falling below $65,000 on Tuesday for the first time since on May 16.

Higher Rates for Longer Narrative Limits Bitcoin Profit Potential

Prices of cryptocurrencies, including Bitcoin, are range-bound as investor enthusiasm for riskier assets has been dampened by the prospect of prolonged high borrowing costs in the United States.

Several Federal Reserve officials have stressed the need to continue making progress in controlling inflation, even though last week's US inflation data was weaker than expected. As a result, the US central bank now forecasts just one interest rate cut this year, down from a previous expectation of three cuts.

This narrative has strengthened the US dollar, with the (DXY) rising 0.2% over the past five days. A stronger dollar typically reduces Bitcoin's appeal as it makes dollar-denominated assets more attractive compared to riskier investments like cryptocurrencies.

In the short term, BTC has the potential to recover towards $67,000, according to analysis firm Glassnode. This threshold could present resistance and breaking it could set the stage for an even higher target of $69,500.

On the other hand, the $65,000 mark is considered a key psychological support level, which could be instrumental in maintaining investor confidence.

Cryptocurrency price today: altcoins rise slightly

Following Bitcoin, most major altcoins also rose slightly on Thursday.

The world's No. 2 token added 1.1% to $3,597.04, while rising 1.4% and 1%. On the contrary, it fell 0.5%.

Among meme tokens, they are up 0.6% and 0.4%.

Bernstein raises Bitcoin price target to $200,000

Earlier this week, analysts at Bernstein raised their Bitcoin price target to $200,000 from $150,000 “to reflect the positive surprise in Bitcoin ETF flows since their launch.”

The firm maintains that Bitcoin and related cryptocurrency stocks are undervalued and poised to generate significant institutional interest as regulatory concerns subside.

“We remain convinced of our thesis of the new Bitcoin cycle,” Bernstein noted. “Bitcoin has been embraced by institutional investors and global asset managers have experienced some success in the cryptocurrency space. For us, the next stage of demand should come from cryptocurrency viewers.”

Bernstein analysts emphasize the potential of Bitcoin ETFs, pointing to a 150% rise in Bitcoin since BlackRock (NYSE 🙂 filed its Bitcoin ETF application.

The note also addresses skepticism from pessimists who argue that ETF flows are not genuine, driven more by the 'cash & carry trade' than by 'net long' positions.

Bernstein sees this as a “Trojan horse” for adoption, with investors likely to take on “net long” positions as ETF liquidity improves. While initial allocations were driven by the retail sector, they expect strong institutional growth, anticipating ETF approvals in major financial institutions for the third and fourth quarters.

“Tactically, the low to mid $60,000s/high $50,000s (if we get there) should be interesting entry points,” Bernstein noted.

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