Newly Launched Bitcoin ETFs Attract Billions of Dollars
The recently launched spot Bitcoin ETFs have been successful in attracting billions of dollars, with fresh inflows reaching new highs every day. Just this week, BlackRock’s iShares Bitcoin ETF (IBIT) alone received around $500 million in a single day. According to a survey by QCP Capital, global liquidity has been shifting back into Bitcoin ETFs, leading them to predict that the price of BTC will reach at least $70,000 by the end of March.
Bitcoin ETF Inflows Driving BTC to New All-Time Highs
Bitcoin (BTC) has surpassed the $52,000 mark for the first time in over two years, thanks to significant inflows from BTC spot exchange-traded funds (ETFs). These ETFs are seeing inflows averaging between $500 million and $650 million per day, resulting in the acquisition of 10,000 to 13,000 BTC daily. QCP Capital predicts a sustained influx as global liquidity continues to flow into these spot ETFs. Institutions like Fidelity have also shown acceptance of cryptocurrencies by allocating a portion of their conservative ETFs to crypto assets. This trend is causing Bitcoin ETFs to eat into the market share of gold.
In addition to spot market activity, there has been a surge in BTC call option purchases. Traders have spent nearly $10 million on premiums for call options with strike prices ranging from 60,000 to 80,000, expiring between April and December. With these significant capital inflows, QCP Capital analysts believe that Bitcoin could easily surpass its all-time highs by the end of March.
US Equity Market Supports BTC Price Rally
After facing selling pressure due to unsatisfactory CPI data for January, Wall Street indices partially recovered on Wednesday. The unexpected increase in inflation has raised concerns about future rate cut decisions by the Federal Reserve, leading investors to analyze future movements carefully.
The S&P 500 surged by 1% on Wednesday, reclaiming the 5,000 milestone. Major tech giants like Nvidia Corp, Microsoft Corp, and Apple Inc led the upward momentum of US stocks. The NYSE Fang+ index, which includes these companies, surged by 2%, outperforming the overall market.
As a result of this positive movement in the equity market, the crypto market also experienced an upward rally. Bitcoin extended its gains by 6% in the last 24 hours and is currently trading at $52,431. Additionally, several top altcoins saw gains ranging from 5-10% on Wednesday.
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