Although the Bitcoin (BTC) price made new all-time highs (ATH) today, there could be more gains for the cryptocurrency’s future price trajectory.
Bitcoin To Hit $100k By Inauguration Day?
Following the victory of the Republican presidential candidate Donald Trump, the leading digital asset witnessed a steep surge in price, breaking through its previous ATH of $73,737 posted earlier this year in March.
A new report by cryptocurrency custodian Copper.co posits that BTC’s upward momentum may extend into 2025. Commenting, Fadi Aboualfa, Head of Research at Copper.co, stated:
We have back-tested the ETF accumulation trend against potential price ranges.A $100,000 Bitcoin is quite possible by the time the 47th US President heads to the Capitol for inauguration on January 20, with ETFs holding approximately 1.1 million Bitcoins.
The firm’s forecast considers the historical Bitcoin exchange-traded funds (ETF) accumulation trends and the recent uptick in spot ETF inflows.
At the time of writing, the total value of net assets held in spot BTC ETFs stands at $69.28 billion, accounting for more than 5% of the asset’s total market cap.
Notably, the research firm had predicted last month that Bitcoin ETFs could hold slightly under a million BTC by election day. These ETFs hold about 986,000 BTC, proving the firm’s assessment largely accurate.
The increasing popularity of Bitcoin ETFs shows the continually rising institutional interest in the digital asset. Recent reports show the demand for spot Bitcoin ETF is currently at a 6-month high.
Data from crypto ETF tracker SoSoValue shows that October 2024 was one of the most active months regarding BTC ETFs, as the financial products attracted roughly $3 billion in total net inflows.
Betting Markets Still Not Bullish On Ethereum
While the top cryptocurrency by reported market cap has already entered uncharted territory in terms of price, the second-largest digital asset, Ethereum (ETH), continues to underperform.
Citing betting markets, the report by Copper.co says it foresees only about a 12% chance of ETH hitting a new ATH this year. The report reads in part:
The lukewarm appeal of ETFs has dampened traders’ mood, though investors seem largely unfazed. While Ethereum is now inflationary, its year-to-date supply growth was just 89k Ether, compared to the 5.7 million coins that have moved into staking.
That said, not all is gloomy for Ethereum ETFs. Recently the State of Michigan revealed that the Michigan Retirement System had invested close to $10 million in ETH ETFs, eclipsing its total investment in Bitcoin ETFs.
While the recent rise in crypto ETF product activities is encouraging, investors should exercise caution as the digital asset market is notorious for showing high volatility within a short period.
For instance, on November 4, spot BTC ETFs recorded $541 million in single-day net outflows, the second largest since January. BTC trades at $74,300 at press time, up 6.4% in the past 24 hours.
Featured Image from Unsplash.com, Chart from TradingView.com
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