Excessively high price estimates for Bitcoin (BTC) $67,371 are more common than not in this industry. However, many analysts and investors believe that Bitcoin
Price Surges Driven by Spot Bitcoin ETF Inflows, upcoming US Election, and Soaring Government Debt
The recent strength in Bitcoin ( BTC ) price can largely be attributed to the launch of spot Bitcoin ETFs, which have attracted a net total of $2.11 billion in funds since Oct. 11. These ETFs, launched in January 2024, now hold over $60 billion in assets under management (AUM).
Institutions began showing interest in cryptocurrencies as early as 2017, when the Securities and Exchange Commission (SEC) first announced plans to launch a Bitcoin ETF. However, the SEC ultimately decided against approving any ETFs that would track the spot price of Bitcoin.
Instead, the SEC opted to approve ETFs that would track Bitcoin futures contracts, which are derivatives that allow investors to bet on the future price of Bitcoin without having to actually own the cryptocurrency. This decision was met with disappointment by many in the crypto community, who argued that spot ETFs would be a more accurate and liquid way to track the price of Bitcoin.
Despite the setback, several asset managers continued to file applications for spot Bitcoin ETFs with the SEC. Their efforts paid off in October 2024, when the SEC finally approved the first spot Bitcoin ETF. The launch of this ETF was quickly followed by several others, and together they attracted billions of dollars in institutional資金.
This influx of institutional demand has been a major driving force behind the recent rally in Bitcoin price. After bottoming out at $3,200 in late December 2022, Bitcoin has rallied by over 2,000% to reach its current price of $67,371.
If Bitcoin continues to rally at this pace, it could easily reach $100,000 within the next 12 months. In fact, some analysts believe that Bitcoin could even rally to $200,000 or more in 2024.
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