As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent developments in the Bitcoin market have me more optimistic than ever before. The surge in the total net flows for Bitcoin ETFs and their rapid achievement of numbers that gold ETFs took years to reach is nothing short of remarkable. This strong demand from both retail and institutional investors is a clear sign that we are entering a new era for crypto adoption.
In more straightforward terms: According to Matt Hougan, the chief investment officer of Bitwise, the argument supporting the rise of Bitcoin over $100,000 has become stronger in the past few weeks, as he recently stated on his blog post.
According to Hougan’s explanation, it is highly likely that the value of one Bitcoin (BTC) will eventually surpass six figures because of various factors, including institutional investment, broader economic conditions, and on-chain indicators.
According to Eric Balchunas, a specialist in exchange-traded funds, the U.S. Bitcoin ETF market has seen a significant surge, with total net flows exceeding $20 billion. The collection of Bitcoin ETFs in the United States now manages over $65 billion in assets due to this week’s inflow of approximately $1.5 billion.
According to Balchunas, Exchange Traded Funds (ETFs) that track traditional assets such as gold required several years to reach their current figures. However, Bitcoin-related products managed to reach the same benchmark in just a single year, suggesting robust interest from both individual and institutional investors.
Bitcoin ETFs have crossed $20b in total net flows (the most imp number, most difficult metric to grow in ETF world) for first time after huge week of $1.5b. For context, it took gold ETFs about 5yrs to reach same number. Total assets now $65b, also a high water mark.
— Eric Balchunas (@EricBalchunas) October 17, 2024
Experts such as Hougan, QCP Capital, and others have identified the upcoming U.S. presidential elections as a potential factor driving Bitcoin’s price surge. Notably, pro-Bitcoin candidate Donald Trump has been consistently leading betting polls on platforms like Kalshi and Polymarket.
There’s an increasing perspective that Bitcoin’s price could remain robust, irrespective of who wins the White House election.
According to Hougan’s statement, the accumulation of Bitcoin by large holders (or “whales”) serves as a positive sign for the market. As reported by CryptoQuant, these big investors have been purchasing Bitcoin at unusually high levels. The founder of CryptoQuant, Ki Young Ju, added that Bitcoin’s open interest reached an unprecedented $20 billion, with new wallets belonging to whales now controlling approximately 9.3% of the total Bitcoin supply.
New whale wallets now hold 1.97M #Bitcoin.
Each has over 1K BTC, average coin age under 155 days, excluding exchange and miner wallets, likely custodial.
Their BTC balance surged 813% YTD, taking up 9.3% of the total supply, valued at $132B today.
— Ki Young Ju (@ki_young_ju) October 16, 2024
According to many supporters of cryptocurrencies, they anticipate that funds will move into higher-risk investments shortly. They point to seasonal trends, record-breaking stock prices, and central banks’ recent decisions to lower interest rates – such as the Federal Reserve. In the past, Bitcoin has typically seen growth during the last quarter of the year. Furthermore, experts believe that a low-interest rate environment could strengthen this pattern.
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2024-10-18 20:08