bitcoin has been in full swing, exceeding $52,000 for the first time since December 2021. The leading digital asset has It has already risen more than 23% in 2024and a major driver of this meteoric rise has been the influx of institutional money entering the space through bitcoin spot ETFs.
bitcoin's overall credibility among traditional investors has been growing since early February, with ETFs recording between $400 million and $650 million in daily inflows over the past week. At the same time, btc purchase options They have seen a massive increase.
This bullish sentiment has led investors to start anticipating the moment when btc would reach a new all-time high. According to analysts At QCP Capital, a crypto asset trading company, bitcoin is set to hit a new all-time high before the end of March 2024.
Major Firm Predicts bitcoin May Hit New All-Time High Before April
The bitcoin Current all-time high of $69,044 has seemed like an insurmountable mountain for the past two years, especially during the prolonged bear market of 2022, in which btc was trading below $17,000. However, things have changed since then, and current metrics point to the price of bitcoin surpassing this price level in the coming months.
This change in sentiment can primarily be attributed to the attention around spot bitcoin ETFs. Although bitcoin seemed to struggle following a news sell-off event for weeks after these ETFs hit the market, things have since turned positive.
According data According to BitMEX Research, bitcoin ETFs have witnessed massive inflows led by BlackRock ETFs over the past week. At the same time, capital outflows from Grayscale's GBTC have slowed. Consequently, ETFs have received between $400 and $650 million in daily inflows, which is equivalent to between 8,000 and 12,000 btc purchased daily.
In particular, the commercial impact all-time highs on February 14, with the top nine ETFs reaching $1.5 billion in trading volume.
What is driving the btc price rally?
QCP Capital attributes this growing institutional investment in bitcoin as a critical driver of future growth. Analysts expect this influx to continue as btc becomes increasingly popular among traditional investors and global liquidity shifts toward spot ETFs, allowing it to surpass its all-time high before April.
Analysts also looked at the massive purchases of btc call options, noting how $10 million was spent last week on premiums for strikes of $60,000 to $80,000 expiring from April to December. This price is interesting as it indicates that many investors are already eagerly waiting for bitcoins exceeding $69,000 in the coming months.
Predictions may be right or wrong, but bitcoin appears poised to continue its meteoric rise in value. It is also important to note that the next bitcoin halving, scheduled for April 2024, is steadily approaching.
Dall-E cover image, Tradingview chart
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