Crypto research firm 10x Research has cautioned that a significant drop in Ethereum prices could hinder Bitcoin from achieving a sustainable new all-time high of over $83,000, as per a June 7 analysis shared with CryptoSlate.

In the past week, ETH's price has notably underperformed compared to Bitcoin. Ethereum, the second-largest digital asset, declined by about 1.2%, while Bitcoin increased by over 3%. Although not explicitly detailed in the note, 10x Research believes Ethereum's performance could negatively impact Bitcoin sentiment.

10x Research highlighted that traders are currently more inclined to invest in Bitcoin, noting that the anticipated demand for ETH exchange-traded funds (ETFs) might fall short. They stated:

“Ether futures positions are already overstretched, and as SEC Chair Gary Gensler mentioned this week, approval of ETH ETFs could be delayed. This week, ETH futures increased by $0.3 billion, while traders favored Bitcoin, which saw a $2.2 billion increase. The figures are clear.”

Path to Bitcoin's New ATH

The firm suggests Bitcoin could reach a new all-time high of $83,000 soon if it breaks a critical technical pattern by June 12. Markus Thielen, CEO of 10x Research, remarked:

“It's just a matter of time until Bitcoin achieves a new all-time high. The head-and-shoulders formation points to a rally towards $83,000, with the resistance likely breaking within the next few days.”

Their optimistic outlook is supported by recent global economic activities, such as interest rate cuts in Canada, Denmark, and Europe, a weakening US job market, and potential inflation declines.

10x Research explained that increasing Bitcoin’s price by 1% and 10% typically requires $800 million and $8 billion in inflows, respectively, from various sources, including Bitcoin ETFs, which recently comprised 35% of total Bitcoin flow.

To achieve a 5% weekly Bitcoin rally, the market needs $4.2 billion in inflows, with Bitcoin Spot ETFs contributing $1.7 billion. For Bitcoin to hit the projected $83,000 high, 10x Research estimates that over $13 billion in inflows is necessary. They added:

“A breakout above the $71,600 trend line will trigger more buying across multiple products, but $13 billion in inflows demands significant commitment. Nonetheless, we believe this is feasible given a weaker US job market (unemployment at 4.0%) and lower inflation expectations (3.3%) next week, which should create a favorable macroeconomic environment for new all-time highs.”