Cryptocurrency specialists forecast a sustained upward trajectory for digital currencies in the coming year. The year began with a positive outlook, partly due to the anticipated endorsement of Exchange Traded Funds (ETFs). Altcoins saw a sharp increase in value in December 2023, and similar trends are expected to bolster the market throughout the year, with a focus on spot Bitcoin ETFs.
Bitcoin’s Price Rally Surges On
Bitcoin, which suffered a dip to $15,500 in November 2022, has recovered remarkably, breaching the $50,000 mark and achieving a two and a half year high. This rebound has rendered earlier predictions of a drop to $12,000 far-fetched.
Spot Bitcoin ETFs Attracting Capital
Spot Bitcoin ETFs have witnessed a significant influx of funds, totaling $4.5 billion in just over a month of trading since their launch on January 11. Despite initial large outflows from GBTC, subsequent investments have seen net inflows persist, with BlackRock’s Bitcoin reserves crossing the 100,000 BTC mark by February 13.
Recent trends show a daily average net inflow of $450 million into these ETFs. In just two days, this figure reached nearly $1 billion, which is quite substantial when compared to the spot markets. Excluding GBTC, the collective reserve of ETF issuers now stands beyond $13.4 billion, surpassing earlier forecasts.
Tristan Dickinson of the dYdX Foundation highlighted the industry’s growth, comparing Bitcoin to gold and citing the upcoming halving in April as a sign of a potential bull market. Should the inflow of capital maintain its current pace, predictions of a peak surpassing $60,000 could lead to new record highs for cryptocurrencies.