There is a divide among Bitcoin maximalists about what is driving the current surge in Bitcoin. Some believe it is the capital inflow from newly introduced ETFs, while others attribute it to the anticipated supply shock from the halving event. Investors are more concerned about the rise in the price of BTC rather than which factor is influencing it.
ETFs Boost Bitcoin’s Growth
Bitcoin's price soared from $38,500 to $73,777 in the first quarter of 2024, a significant increase of over 68%. This surge is mainly credited to the emergence of new US spot BTC ETFs, which garnered $12 billion in inflows during this period. These ETFs now hold total assets over $59 billion, propelling BTC's market value to exceed $1 trillion.
Fred Krueger, a Bitcoin maximalist and experienced investor, predicts a bullish trajectory for BTC, with an estimated price of $195,000 by the end of 2024. His analysis on platform X highlights the crucial role of ETF inflows in driving the 2024 bull market cycle.
The Halving Event: A Prominent Factor in Bitcoin's Future
While Krueger focuses on ETF inflows, he does acknowledge the potential impact of Bitcoin's halving event. Although traditionally considered a supply shock leading to price surges, Krueger believes its influence might be diminishing.
Krueger suggests that the halving event could prevent significant price declines but may not initiate a substantial rally on its own. Bitcoin's recent market movements have been mixed, with the price temporarily dropping to the $68,000 range and then recovering to $69,000 after falling below $70,000.
Rekt Capital, a respected crypto market analyst, notes Bitcoin's weekly candlestick closing above $71,200 as a breakout, surpassing the previous cycle's all-time high of $69,000.
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