Analysts have revised Bitcoin’s price target to $112,000, spurred by a surge in exchange-traded fund (ETF) inflows, indicating bullish sentiment among institutional investors and potentially driving the cryptocurrency to new highs.
Bitcoin ETF Inflows Expected to Drive Price Increase
SpotOnChain analysts have noted substantial inflows into Bitcoin ETFs, with Bitcoin’s net flow turning positive after $39 million in inflows, reversing prior weak volumes.
In contrast, Ethereum ETFs have experienced net outflows for the second consecutive day. Grayscale’s ETHE saw a $20 million outflow, while other U.S. Ethereum ETFs showed zero net flow.
The positive inflows coincide with Bitcoin ETF investors having a higher cost basis than Bitcoin’s current price. CryptoQuant CEO Ki Young Ju highlighted that the cost basis for “New Custodial Wallets/ETFs” is $62,000, while Bitcoin currently trades around $57,000.
Bitcoin Cost Basis
Source: CryptoQuant
David Puell, a research associate at Ark Invest, suggests that current market conditions indicate that the average ETF investor may be at a loss, though history suggests a significant upward move is still possible.
“When looking at bitcoin’s yearly highs, the percent price drawdown in 2024 aligns with past corrections linked to bullish trends, such as those seen in 2016 and 2017,” Puell commented.
Historical Bitcoin Drawdowns
Source: Ark Invest
The combination of increased ETF inflows, institutional accumulation, and historical trends has led analysts to believe Bitcoin is poised for a major rally. Miky Bull raised his Bitcoin price target to $112,000, reflecting optimism about the cryptocurrency’s potential to surpass previous highs.
“Bitcoin is heading toward a target of $112,000 this year. History has shown that post-halving in 2016 and 2020 Q4 triggered a parabolic rally to a cycle top,” Bull asserted.
Bitcoin Price Analysis
Source: TradingView
His analysis focuses on Bitcoin’s cyclical price movements, particularly after halving events that reduce mining rewards and often precede significant price increases. The recent surge in ETF inflows could act as a catalyst, influencing further investment and adoption.
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