Institutional inflows continue to flood the market, with new analysis predicting a significant price appreciation for the benchmark cryptocurrency.
Bitcoin prices could blast to an impressive $112,000 per coin this year if the ongoing trend of inflows linked to United States BTC spot exchange-traded funds (ETFs) continues, according to CryptoQuant founder and CEO Ki Young Ju.
Ki Young Ju of CryptoQuant sees Bitcoin’s successful journey to $112,000 in 2024.
In a recent post on the X (formerly Twitter) platform, the on-chain analyst highlighted the impact of the newly minted spot BTC ETFs on Bitcoin’s realized market cap. Per CryptoQuant data, the ETF’s combined inflows could add a whopping $114 billion to the existing $451 billion in 2024 alone — leading to a potential market cap of $565 billion.
“Bitcoin market has seen $9.5B in spot ETF inflows per month, potentially boosting the realized cap by $114B yearly. Even with $GBTC outflows, a $76B rise could elevate the realized cap from $451B to $527-565B,” Ki noted.
Ki referenced the current withdrawals from the largest fund, Grayscale, which have subsided significantly in recent weeks since its launch as a spot Bitcoin exchange-traded fund last month.
The landmark approval and subsequent trading of nearly a dozen spot ETFs on Wall Street has led institutional investors to flock to the investment vehicles as they give them exposure to the alpha digital coin in a safe and regulated way. The rush is mainly due to pent-up demand. Before the eventual greenlighting, the U.S. Securities and Exchange Commission (SEC) stonewalled the listing of spot market crypto ETFs for a decade.
BTC is trading for $49,787 per coin at publication time, having risen by approximately 10.9% over the week, according to CoinGecko. The entire crypto market cap is down about 1.2% today, now valued at $1.88 trillion.
Ki concluded that BTC’s “worst case” scenario was $55,000 — or a roughly 14% jump from today’s prices.
Multiple market watchers maintain a bullish outlook for 2024, a sentiment reflected in the recent price bump. For instance, Blockstream CEO Adam Back thinks Bitcoin could potentially exceed the coveted $100,000 milestone even before the historically bullish halving event scheduled for April.
“1st oct 2021 #bitcoin crossed $47k like yesterday, then on it’s way to the $69k ATH. that run-up took 41 days. there are 70 days to the halving. just another data point for what it looks like, and how we may yet get a new ATH or even $100k before the halvening,” Back postulated in his own X post.
Halving is part of the Bitcoin network’s code to tame inflation on the cryptocurrency and will slash the miner rewards in half for successfully mining a BTC block. This makes obtaining or mining new bitcoin much harder — and has historically preceded bull runs.
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