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Cryptocurrency News Articles

Analysts Say Bitcoin ETF Inflows Will Affect BTC's Price in 2025

Dec 16, 2024 at 04:35 pm

Bitcoin hit an all-time high of $101,000 this year, gaining a whopping 132% price increase in 12 months. The key factor that drove BTC's price increase was the US spot Bitcoin ETFs launch in January 2024.

Analysts Say Bitcoin ETF Inflows Will Affect BTC's Price in 2025

Bitcoin (BTC) price hit a new all-time high in 2024, rising to $101,000 and gaining an impressive 132% over 12 months. A key factor driving BTC’s price surge was the launch of US spot Bitcoin ETFs in January 2024.

Initially, experts predicted that the ETFs would accumulate cash inflows ranging from $5 to $15 billion in their first year. However, the ETFs proved to be a massive success, exceeding predictions and garnering over $100 billion in inflows within just six months.

According to Bitwise analysts, Bitcoin ETF inflows are expected to continue rising. With additional interest from corporations and governments that missed out on the first wave, BTC’s price could be pushed up to $200,000 in 2025.

The ETH price chart shows a 66% price gain over the year. However, it could have been better for Ethereum, which suffered from a divided investor base. Potential Ethereum investors chose to invest in Bitcoin and smaller competitors.

But there is optimism that increased activity from Ethereum’s Layer 2 blockchains, such as Starknet and Base, will improve investor sentiment and drive up investments in ETH. It saw the ETH supply briefly turn deflationary.

If Ethereum sees massive growth in the number of stablecoins and tokenized projects built on the network, ETH price could gain 47% and rise to $7,000.

Solana is the undisputed meme coin blockchain and of the magnificent three, SOL performed the best this year, with a price increase of 232%.

Solana’s ascendant meme coin launchpad, Pump.fun, which launched in the UK in January 2024, cemented Solana’s place as the go-to blockchain for meme coin launches. By October 2024, the launchpad had facilitated the creation of over 2 million tokens and generated over $100 million in revenue.

Next, Solana could capitalize on its success with meme coins by welcoming and promoting projects with real utility. This could drive SOL’s price up by another 232% to hit an ATH of $750.

News source:theprint.in

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Other articles published on Dec 16, 2024