In a bid to shed light on the possible bitcoin price recovery, renowned bitcoin advocate Samson Mow has revealed a list of crucial macroeconomic indicators that could influence the cryptocurrency's prospects. Mow's projections, which include a $1 million price target, depend on factors such as spot exchange-traded fund (ETF) inflows and the network hashrate.
With bitcoin is currently trading at $43,428. Up 3.3% in the last 24 hours, it remains 38% below its all-time high of $68,789. However, Mow believes that the upcoming halving event, along with the approval and increase in btc spot ETF inflows, could push the price of the cryptocurrency to new heights.
Crucial Mow bitcoin Indicators
bitcoin price action. Source: Coingecko
The first indicator on Mow's list is bitcoin spot ETF inflows. With the recent introduction of bitcoin ETFs in the United States, increased capital inflows into these products could help mitigate the impact of retail price sell-offs. Mow believes a significant capital inflow into spot ETFs is vital to his bullish projection of bitcoin reaching $1 million in the future.
These are the bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin Macro indicators I'm looking at:
ETF entries
Hash rate
Finex Whale Accumulation
Trend 200 WMA
Tether USDt AUM
Government interest payments on debt
GDP debt ratios
Nation-state adoption of bitcoin
Real inflation
M3 money– Samson Mow (@Excellion) January 28, 2024
Surprisingly, Mow also includes Tether (USDT) assets under management (AUM) as an essential indicator. The stablecoin's role as a key liquidity base for btc could significantly affect the price of the cryptocurrency.
In addition to these on-chain indicators, Mow emphasizes the importance of factors such as government debt interest payments, debt GDP ratios, bitcoin adoption by nation states, real inflation, and M3 money. These indicators, according to Mow, are converging to influence the long-term price outlook for major cryptocurrencies.
btc market cap currently at $851.564 billion. Chart: TradingView.com
Spot btc ETF: outlook, developments
While Mow's insights provide valuable insights, the cryptocurrency market remains highly volatile and unpredictable. However, recent developments around btc spot ETFs have been noteworthy. Ongoing GBTC Grayscale outflows, although reduced compared to previous stages, have reached a substantial $2.2 billion. This decline in outflows could indicate growing interest and confidence in btc spot ETFs.
Additionally, global attention around btc spot ETFs is evident as Hong Kong prepares to launch and approve its own version of the product. Harvest Hong Kong, one of China's largest fund companies, has already applied for approval of the btc spot ETF from the Securities and Futures Commission (SFC). In the coming weeks, regulators around the world may express interest in supporting these ETFs to attract institutional capital.
As bitcoin continues its journey towards price recovery, Mow indicators offer valuable information on potential catalysts. However, investors should approach the market with caution and conduct thorough research before making investment decisions.
Featured image from Shutterstock, chart from TradingView
