The price of Bitcoin skyrocketed to a significant milestone, hitting $35.2K today, a level not seen since May 2022. This historic achievement was propelled by a series of noteworthy events in the cryptocurrency market. Whale transactions, a key indicator of large trades made by influential investors, surged, reflecting a robust on-chain movement and hinting at a sustained upward trajectory. Additionally, a surge in active addresses, reaching levels reminiscent of October 2nd, provided further evidence of the cryptocurrency’s growing popularity and utility.
An intriguing development was the movement of dormant Bitcoins following the price surge. This movement caused the average age of coins to decrease, adding fuel to the already bullish sentiment prevalent in the market. These collective factors suggested that the recent surge in BTC’s price might just be the tip of the iceberg, indicating the potential for a prolonged bullish trend.
Adding to the excitement was the prevailing enthusiasm surrounding Exchange-Traded Funds [ETFs] in the United States. Stephan Livera, a renowned BTC podcast host and Head of Education at Swan Bitcoin, expressed his belief that the ongoing rally was merely a prelude to a massive bull run, predicting a peak value of approximately $500,000. Livera highlighted the significance of the approval of a spot Bitcoin ETF, stating that it would significantly impact Bitcoin’s price dynamics.
The recent surge in BTC’s price, fueled by the ETF frenzy, led to a temporary 10% spike, driven in part by a false report suggesting the approval of BlackRock’s iShares Bitcoin ETF application by the Securities and Exchange Commission [SEC]. Despite this setback, speculations surrounding an eventual ETF approval continue to circulate, keeping market analysts on the edge of their seats.
Bitcoin’s 75% Rise Post ETF Launch- Expert
Galaxy Digital research associate Charles Yu delved into the potential impact of Bitcoin ETFs on the market. He estimated the total addressable market size for BTC ETFs to be a staggering $14.4 trillion within the first year post-launch. Yu’s analysis considered the potential price impact of fund inflows into Bitcoin ETF products, using gold ETFs as a baseline comparison. According to his projections, BTC’s price could experience a 6.2% increase in the initial month after the ETF release and would gradually stabilize at a 3.7% monthly increase by the twelfth month post-launch.
These developments, coupled with expert analyses and market speculations, paint an exciting picture of the future trajectory of Bitcoin’s price, indicating the potential for further growth and a sustained bullish trend in the coming months.