Türkçe
Español
This year, there are many substantial reasons for experts to expect the rise of cryptocurrencies to continue. Optimism for 2024 was particularly impressive in the early days of the year, as there was an expectation for ETF approval. In December 2023, altcoins experienced parabolic surges. The rest of the year is also expected to see a continuation of price increases, supported by spot Bitcoin ETFs.
Cryptocurrencies in 2024
In November 2022, the price of Bitcoin dropped to $15,500 but is now at its highest level in 2.5 years. After surpassing $50,000 again, the doomsday predictions of a $12,000 target became even more ludicrous.
Spot Bitcoin ETF Inflows
The inflow of capital into spot Bitcoin ETFs continues to gain momentum, improving expectations for 2024. Data from Farside Investors shows that Bitcoin ETFs received a total of $4.5 billion within just over a month since they started trading on January 11.
Even though there were significant outflows from GBTC on the launch day, net inflows continued. While a portion of the massive GBTC sales turned into complete exits, a significant part represented a shift to other ETFs. Subsequently, BlackRock’s reserves quickly surpassed the 100,000 BTC threshold on February 13.
This week, we observed an average daily net inflow of $450 million. This almost represents a $1 billion net inflow in two days, a massive amount compared to spot markets. Excluding GBTC, the total reserve size of ETF issuers has now exceeded $13.4 billion. While James from Bloomberg and others predicted a net inflow of $10 billion this year, the actual figure could be higher.
Tristan Dickinson, Head of Marketing and Communications at dYdX Foundation, stated;
“This adoption solidifies BTC as an asset class similar to gold, indicating the maturity of the industry. With the halving in April, the signs of a bull market are becoming increasingly likely.”
If inflows continue to be this strong, we could see a yearly peak well beyond the $60,000 peak predicted by CoinShares, and even a new all-time high.
