Following backing for crypto candidates in the US and the Fed's rate cut, the demand for Bitcoin has surged. The US is expected to follow El Salvador's example to accumulate Bitcoin to tackle the debt crisis.
BlackRock Leads in Cash Inflows
According to recent market data, US spot BTC ETF issuers saw a net cash inflow of $1.38 billion on Thursday, the largest since the historic approval earlier this year. BlackRock’s IBIT registered a net cash inflow of about $1.12 billion, currently holding about $34.2 billion worth of Bitcoins. Fidelity’s FBTC registered the second-largest net cash inflow of about $190 million, with a total holding of $14.58 billion in Bitcoins.
Impact on BTC Price Action
More than 24,000 Bitcoins, worth over $1.8 billion, have been withdrawn from different cryptocurrency exchanges in the past two days.
Bitcoin Price Growth Prospects
Bitcoin reached a new all-time high above $76,000, and its price is expected to climb further in the coming weeks. With increased adoption by nation-states, institutional investors, and retail traders, Bitcoin's price could reach a six-figure range by the end of this year or early 2025. The Bitcoin supply versus demand imbalance is expected to escalate further when the US government begins purchasing more coins following a promise to accumulate 1 million BTCs in five years.
With increasing interest in Bitcoin from both institutional and retail sectors, as well as support from crypto candidates, Bitcoin prices are set to rise significantly in the coming months.
