BitcoinBTC and ethereum, the two largest cryptocurrencies, have rocketed higher over the last year (and now are braced for a fresh $6.9 trillion Wall Street earthquake).
The bitcoin price has topped $50,000 per bitcoin thanks to the long-awaited arrival of a fleet of spot bitcoin exchange-traded funds (ETFs) on Wall Street and bitcoin and ethereum could be about to be further boosted by a surprise move by the Federal Reserve.
Now, after a billionaire’s secret bet on bitcoin and ethereum was revealed, inflows into the new spot bitcoin ETFs suddenly accelerated last week, fueling wild predictions that bitcoin could “steal gold’s crown” as the world’s “prime store-of-value.”
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Bitcoin ETF inflows topped $2.4 billion last week, with BlackRock’s IBIT and Fidelity’s FBTC raking in the lion’s share, according to CoinShares’ data. Year-to-date inflows to crypto funds has rocketed above $5.2 billion thanks to bitcoin ETF hype.
“This represents a significant acceleration of net inflows, distributed widely among various providers, indicating an increasing interest in spot-based ETFs,” James Butterfill, CoinShares’ head of research, told Coindesk.
The continued demand for bitcoin ETFs among investors who have previously eschewed gaining exposure to bitcoin via crypto exchanges or futures ETFs has spurred predictions that bitcoin could challenge gold’s dominance as the world’s most valuable asset.
The bitcoin price at $52,000 gives bitcoin a market capitalization of just over $1 trillion. The gold market cap has been put at $13.6 trillion, according to some estimates.
“[Bitcoin ETF inflows] might be an early sign for bitcoin stealing gold’s crown as the primary store-of-value,” ETC Group head of research André Dragosch told The Block.
“This trend reinforces our confidence in bitcoin’s dual role as both a ‘risk-on’ investment and a reliable safe-haven asset,” Ryze Labs analysts said in emailed comments. “We continue to believe that bitcoin will outperform gold in both market conditions.”
Some bullish traders have said they expect the bitcoin price to rocket to around $100,000 per bitcoin in 2024.
“The potential for bitcoin to break its all-time high and to hit $100,000 in 2024 is easily within reach as bitcoin ETFs are now open to millions of new investors,” Austin Reid, head of revenue at crypto prime brokerage FalconX, said in emailed comments.
“Bitcoin ETFs already hold a substantial portion of bitcoins supply (over 3% already), so as this share grows, so will liquidity dynamics.”
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Meanwhile, bitcoin ETF hype has pushed up the ethereum price as traders bet it will be the next cryptocurrency in line for Wall Street spot ETFs.
“As the hype for the now-approved bitcoin spot ETFs pulls investors into the industry, I believe ethereum will benefit as well as investors diversify[ing] their portfolios to include more crypto assets,” Omnia Markets chief executive Mitesh Shah said as part of Finder’s latest ethereum price prediction survey.
Finder’s of 40 crypto experts returned an average ethereum price prediction of almost $4,900 per ethereum in 2024, near its all-time high. Shah said he expects the ethereum price to reach $5,000 this year before charging as high as $10,000 in 2025.
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