Bitcoin Price Target Rises After ETF Crash
Analysts have raised their price target for Bitcoin to $112,000 following the influx of exchange-traded funds (ETFs).
This increased activity suggests bullish sentiment among institutional investors, which could lead the cryptocurrency to new highs.
Bitcoin ETF will lead to price increase.
Analysts at SpotOnChain report huge inflows into Bitcoin ETFs. Bitcoin net inflows came in at $39 million, reversing earlier weak volumes and turning positive.
In contrast, Ethereum ETFs saw net inflows for the second consecutive day, with Greyscale's ETHE experiencing $20 million in outflows, while other US Ethereum ETFs had zero net inflows.
The positive income streams occur if the value base of Bitcoin ETF investors is higher than the value of Bitcoin. CryptoQuant CEO Ki Young Joo has a price base for “New Custodial Wallets/ETFs” of $62,000, while Bitcoin is trading at $57,000.
According to ArchInvest Research Associate David Poole, these market conditions suggest that the average ETF investor could be on the losing end. Still, the historical outlook reinforces the potential for significant upside.
“Measured as a percentage of the price decline in 2024, it represents a correction historically associated with bitcoin's major trends, such as in 2016 and 2017,” Poole said.
A combination of increased ETF flows, institutional accumulation and historical patterns contribute to the consensus among analysts that Bitcoin is poised for a significant rally.
For example, Mickey Bull raised his Bitcoin price target to $112,000, which shows his confidence in the cryptocurrency's all-time high.
“Bitcoin's initial target for this year is $112,000. History really did win. In the year The post-half-to-cycle top of Q4 2016 and 2020 witnessed the start of a parabolic rally,” Bull confirmed.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
His analysis points to Bitcoin's cyclical price movements, particularly following halving events that reduce mining rewards and cause significant price increases. The recent increase in ETF revenues could act as a catalyst, influencing investment and adoption.
Disclaimer
Adhering to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This newsletter aims to provide accurate and up-to-date information. However, readers are advised to independently verify facts and consult with experts before making any decisions based on this content. Please note that our terms and conditions, privacy policies and disclaimers have been updated.
