Key Points
- Bitcoin’s price is expected to reach $100K due to increased demand, primarily led by BlackRock’s IBIT.
- The rise in Bitcoin’s price is attributed to significant cash inflows into US spot BTC ETFs.
Bitcoin’s price surged above $91.5K on Tuesday, indicating a potential bullish trend in the near future. In the daily timeframe, the leading cryptocurrency has been displaying a symmetrical ascending triangular pattern, having recently achieved a new all-time high of approximately $93,477 last week.
From a technical analysis perspective, Bitcoin has already entered the most respected phase of the macro bull market, often referred to as euphoric. Evidence of this is the significant increase in FOMO traders, as demonstrated by the increased daily trading volume and market liquidations.
Rising Demand for Bitcoin
Bitcoin’s price has been in the discovery phase for the past three weeks, following the historic election of Donald Trump as the 47th president of the United States. In recent weeks, Bitcoin investment products, primarily led by US spot BTC ETFs, have seen significant net cash inflows.
On Monday, US spot BTC ETFs registered a net cash inflow of approximately $254 million, surpassing the daily coins produced by miners. Over the past seven weeks, US spot Bitcoin ETFs, headed by BlackRock’s IBIT, have recorded over $9 billion in net cash inflows.
To improve its market liquidity, BlackRock’s IBIT is expected to have its options listed and traded on the Nasdaq exchange today, as confirmed by Nasdaq Head of ETP Listings, Alison Hennessy.
Institutional investors, led by MicroStrategy Inc (NASDAQ: MSTR) and Metaplanet Inc, have continued to increase their purchases. On Monday, MicroStrategy announced that it had acquired 51,780 Bitcoins, valued at over $4.6 billion. As a result, MicroStrategy now owns 331,220 Bitcoins, accounting for more than 1 percent of the total coins that will ever exist.
The Bigger Picture
Bitcoin’s price is projected to rally exponentially in the coming months as countries prepare to adopt it as a strategic reserve currency. As spot gold ETFs continue to lose to Bitcoin, the rotation of crypto cash is expected to favor the altcoin market.
Altcoins, including Ethereum, Dogecoin, XRP, Solana, and others, have signaled an imminent bullish breakout to a parabolic rally ahead.
