75% of Recent Bitcoin Investments Attributed to New US ETFs, $56,000 Price Target Expected
Summary:
New data reveals that 75% of all fresh Bitcoin investments over the past two weeks have originated from the 10 new spot Bitcoin ETFs approved in the U.S. on January 11. This has contributed 2% to the total historical Bitcoin investment. The price of Bitcoin recently rose to a two-year high, pushing its market value above $1 trillion. The surge in price is primarily attributed to high demand from ETFs. The next significant price level for Bitcoin is expected to be $56,000.
Research shows that of all the recent Bitcoin (BTC) investments, an astounding 75% can be attributed to the 10 newly-authorised spot Bitcoin exchange-traded funds (ETFs) in North America, as of January 11. CryptoQuant, a firm specialising in on-chain data analytics, found that in the past fortnight, these ETFs, not including the Grayscale Bitcoin Trust GBTC ETF, represented the source of more than three-fourths of all fresh Bitcoin investments. "These ETFs are responsible for over 75% of the new capital inflow into Bitcoin. Additionally, their contribution has spiked to make up 2% of all historic Bitcoin investments in just a month, based on the metric of realised market capitalisation," the firm's report highlighted.
As of 10:45 a.m. UTC, Bitcoin had gone up 1.8%, selling at $52,354. On February 14, Bitcoin hit a two-year peak of $51,000, pushing its market valuation over the $1 trillion mark, a first since November 2021. As such, the current market capitalisation for all cryptocurrencies is $1.96 trillion, a 2.01% increase from the previous day.
CryptoQuant's head researcher, Julio Moreno, stated in a February 14 post that the recent Bitcoin price acceleration is principally due to the high demand from ETFs. "ETF demand is the primary force driving Bitcoin past the $50,000 milestone."
The report showed that Bitcoin ETFs had, in total, amassed 4,115 Bitcoins, equivalent to roughly $215 million. The BlackRock managed iShares Bitcoin ETF (IBIT) stood out as it accounted for most of the influx, possessing 4,843 Bitcoins valuing $253 million at the time of reporting.
The CryptoQuant research paper is forecasting the next significant milestone for Bitcoin to be surpassing $56,000. "The $56,000 price tag is the next benchmark for Bitcoin from the perspective of network valuation. There are no red flags in the valuation metrics suggesting the likelihood of a significant price correction."
However, there remains a formidable resistance to Bitcoin's price around the $52,000 mark. This is due to a strong selling pressure on Bitfinex up to the $52,300 mark, as shared by on-chain analyst Cole Garner in a February 14 post.
Published At
2/15/2024 2:59:21 PM
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