The spot Bitcoin Exchange-Traded Funds (ETFs) market recently experienced a significant surge in inflows, surpassing the daily supply of BTC generated through mining. This milestone achievement has had a profound impact on the value of Bitcoin, with the cryptocurrency expected to reach a price target of $108,000 in the coming months.
On May 20, data from Farside Investors revealed that Bitcoin ETFs recorded a total of $237.2 million in inflows. Leading the group was ARKB from Ark Investment, which had inflows of $68.3 million. IBIT from BlackRock came in second with $66.4 million, followed by FBTC from Fidelity Investments with $64 million. GBTC from Grayscale also saw inflows of $9.3 million, marking its fifth consecutive day of inflows after months of outflows.
Currently, the inflows into spot Bitcoin ETFs are more than six to seven times higher than the daily supply of BTC produced through mining. On May 20 alone, Bitcoin ETFs purchased around 3,400 BTC, significantly surpassing the 450 BTC that was mined on the same day. This contributed to the total U.S. Bitcoin ETF inflows of $235 million, equivalent to 3,518 BTC, compared to the weekly mining total of 3,150 BTC. Hong Kong Bitcoin ETFs also made significant purchases on that day.
With nearly $932 million in inflows into Bitcoin investment products last week, institutional interest in the cryptocurrency is once again on the rise.
Bitcoin’s price has been consolidating within the range of $60,000-$70,000 for several weeks, allowing investors more time to acquire the cryptocurrency before the pre-halving surge. However, increased investments in spot ETFs have caused BTC to surpass the $70,000 mark. Currently, BTC is trading at $70,901, reflecting a 6.2% increase in the past 24 hours. The market cap has also risen to $1.4 trillion, and trading volume has increased by 130% to $52.9 billion.
Recent data from CryptoCon indicates that Bitcoin is on track to reach a layer 7 price target of $149,000 by the end of 2024. This forecast is based on the Log Regression Curves, which have proven to be accurate in predicting cycle peaks in 2021. A more conservative layer 6 projection suggests that Bitcoin will reach $108,000 by the end of this year, matching the peak of the 2013 cycle. This forecast aligns with the predictions of other top analysts.
Furthermore, Bitcoin developers believe that programmability could trigger the next bull run for BTC. The project aims to give Bitcoin features commonly associated with Ethereum, such as smart contracts.
In conclusion, the spot Bitcoin ETF market has witnessed a significant influx of funds, leading to a surge in Bitcoin’s value. The cryptocurrency is expected to reach a price target of $108,000 in the coming months, and institutional interest in Bitcoin is on the rise once again. The development of programmability for Bitcoin could also contribute to its future growth.
