On Tuesday, the price of Bitcoin surged to an unprecedented high of $69,000, maintaining its position around the $67,000 mark. However, according to crypto market data provided by on-chain data provider CryptoQuant, there are indications of a potential short-term pause or correction looming, attributed to the rapid escalation of prices.
Data from CryptoQuant reveals that Bitcoin inflows into accumulation addresses have surged to record daily levels, with approximately 38,000 Bitcoin being accumulated as prices approached historic highs. The surge in Bitcoin price primarily coincided with substantial inflows of funds from new investors, as evidenced by the heightened activity in accumulation addresses and the increasing holdings in ETFs, as highlighted by CryptoQuant.
CryptoQuant stated in a research note, “Indeed, the total Bitcoin holdings of accumulation addresses also reached record levels, totaling 1.5 million Bitcoin. These addresses represent investors who solely accumulate Bitcoin and have never sold, indicating robust demand as evidenced by the accelerating growth in their Bitcoin holdings.”
The demand for Bitcoin through ETFs continues to display resilience.
The ongoing resilience in the demand for Bitcoin through Exchange-Traded Funds (ETFs) highlights the sustained interest and confidence among investors in utilizing these financial instruments to gain exposure to the cryptocurrency market. Despite market fluctuations and regulatory uncertainties, ETFs tracking Bitcoin have consistently attracted investment flows, reflecting the growing acceptance of Bitcoin as an asset class. This sustained demand underscores the increasing institutional adoption of Bitcoin and the recognition of its potential as a hedge against inflation and economic uncertainties. Furthermore, the continued development and expansion of Bitcoin-related financial products and services, including ETFs, provide investors with more accessible and regulated avenues to participate in the cryptocurrency market, contributing to the ongoing strength in demand for Bitcoin through these investment vehicles.
There’s speculation that Bitcoin might reach a staggering $140,000.
Bitcoin’s price forecast has become a focal point of discussion, particularly with Bitget’s Managing Director, Gracy Chen, suggesting a potential surge to a range between $120,000 and $140,000. This bold projection is based on the recent influx of funds into Exchange-Traded Funds (ETFs), indicating a forthcoming rally, as reported by Arslan Butt of Cryptonews.
As Bitcoin hovers around the $67,000 mark and demonstrates resilience following a significant retracement, the conditions are ripe for what could potentially be an unprecedented bull market cycle.
