The Bitcoin (BTC) price is supported by significant inflows into spot Bitcoin exchange-traded funds (ETFs). Thus, as the upward momentum continues to increase, it is approaching an important level of $ 50,000. This increase in investor interest indicates growing optimism about the potential profitability of the cryptocurrency market. Here are the details…
ETFs are important for Bitcoin price
Data from BitMEX Research showed a significant increase in net inflows into spot Bitcoin ETFs. It also shows a jump from $68 million at the start of the week to an impressive $541 million by the end of the week. This increase represents the largest inflow observed since the second trading day. It also reflects a significant increase in investor confidence and appetite for Bitcoin investment instruments.
BlackRock, the investment giant that leads in terms of net inflows, attracts attention. Because the company finished the week with over $250 million flowing into the Bitcoin ETF. Fidelity and ARK Invest follow closely behind, with inflows of approximately $188 and $136 million, respectively. However, the Grayscale ETF experienced a worrying trend, with a single-day net outflow exceeding $51 million, indicating potential profit-taking activities.
Fund flows support Bitcoin
These fund flows serve as important indicators of investor sentiment and behavior. Typically, increasing inflows indicate a positive outlook and confidence in future profits. So as a result, as demand increases, prices increase. It is critical that spot Bitcoin ETFs have over $10 billion in assets under management. Because this shows that institutional interest in Bitcoin is increasing.
Bitcoin’s price performance reflected strong inflows into ETFs. Additionally, the cryptocurrency rose to $48,200 on the last trading day of the week. This indicated an increase of approximately 6% in seven days. This upward trend indicates that Bitcoin is increasingly likely to surpass the $50,000 milestone in the near future, driven by strong ETF performance. Adding to the bullish sentiment is the forecast from leading crypto strategist Pentoshi, who predicts a staggering 277% increase in Bitcoin’s price from current levels by the end of 2025.
Pentoshi’s prediction
Pentoshi attributes this potential increase to the approval of spot Bitcoin ETFs, which provide institutional investors with broader access to the cryptocurrency market. Pentoshi says Bitcoin’s three-day chart looks “nice.” According to the crypto strategist, Bitcoin has the potential to rise in the next 22 months. Bitcoin is likely to witness a rally of around 277% from current levels during this period. The analyst says:
I think it is possible for us to see BTC at $180,000 by the end of 2025… And I definitely don’t think it’s that crazy where the world has come and gone. If for some reason something happens or new information comes to light, then I will admit that I was wrong. But so far, at least on the higher time frames. I got pretty accurate results most of the time.
Moreover, data from HODL15Capital reveals that nine newly launched spot Bitcoin ETFs collectively hold more Bitcoin than MicroStrategy. This is an important milestone that highlights the growing influence of ETFs in the cryptocurrency space. Despite the optimism surrounding Bitcoin’s price trajectory, potential price fluctuations and profit-taking activities remain risks to consider.
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