Bitcoin has been center stage since the US SEC approved the ETF application. To be honest, BTC has never really been in the limelight. If anything, the approval helped attract more attention globally. Cryptocurrency enthusiasts are optimistic that the token will rise in the coming days despite the bearish claims. Bullish sentiment is based on factors such as macroeconomic conditions, comparisons to gold, and ETF inflows.
ETF inflows and GBTC outflows
GBTC It has been identified as the main reason for BTC’s rebound to its low value. Selling pressure indicated that now is the time to exit the market or start accumulating tokens before an uptrend is indicated. Many people have chosen the latter, but some have succumbed to the negative trend.
New US ETF inflows are now 170,628 BTC and GBTC outflows are 132,136 BTC. Selling pressure is falling and net flows are poised to move up the ladder. The current margin represents 3.29% of the current BTC supply.
Bitcoin vs Gold
It’s no surprise that Bitcoin has been compared to gold. store of value And it is a better alternative to the dominant product. Bitcoin ETF flows after first 14 days of trading are $1.7 billion. This puts it ahead of gold by $400 million in terms of ETF flows, as gold stands at $1.3 billion.
Analysts believe investment interest is shifting from gold to Bitcoin and that the new ETF is better. Although it is not necessarily linked to the value of Bitcoin, holders are optimistic that its value will rise to ATH by the end of this year..
that much Bitcoin price forecast estimates that the token could reach the $100,000 milestone by the end of 2025, i.e. next year. For reference, BTC is trading at $42,988.38, up 1.65% over the last 24 hours.
Macroeconomic Trends
Macroeconomic trends include factors such as the Federal Reserve’s announcement of interest rate cuts, China printing more money, Hong Kong’s possible approval of a spot Bitcoin ETF, and the resolution of the banking crisis in the United States. Regardless of which factor is chosen, they all point out that liquidity inflow will increase and support the introduction of risky assets.
The Federal Reserve may announce its decision to cut interest rates, which could lead to a Bitcoin bull market. There’s no timeline for this, but many speculate it could be as early as the second quarter. Chain printing money is a sign that liquidity inflows may be on the way.
The uptick will accelerate if Hong Kong approves the ETF application, and strengthen it if the US joins the Chain in money printing. The case for the United States was made on the basis that it wanted to avoid the next banking crisis after SVB.
Over the past three years, there has been a generally negative correlation between Bitcoin and DXY. However, there have been instances where cryptocurrency-related factors have overwhelmed the dollar trend. The collapse of FTX in late 2022 sent Bitcoin plummeting, preventing investors from rooting for the US currency to fall.
counterargument
Data and macro outlook support a bull market for Bitcoin. But if history has taught cryptocurrency enthusiasts anything, it’s that volatility is a cruel factor and can impact prices at any time. Additionally, most optimistic speculations are based on the principle that Bitcoin will do its best.
Nonetheless, institutional adoption and economic conditions are favorable for BTC.
conclusion
Bearish concerns are natural because either things will be bullish or bearish, and at some point people will come to believe both. The current market low comes as selling pressure is starting to wane. Next could be a rise in the cryptocurrency market, especially BTC.