Bitcoin is now poised to scale its all-time high as traders are bullish, and anticipate a price jump following the performance of spot ETFs.
Analysts and observers now believe that Bitcoin (BTC) is well on course to hit $64,000 in the short term following the performance of spot exchange-traded funds (ETFs). At the moment, predictions on the price of Bitcoin are considerably bullish.
Traders are Bullish on Bitcoin’s Price
FxPro Senior Market Analyst Alex Kuptsikevich noted in a market comment that BTC successfully crossing the $50,000 mark is bullish. Kuptsikevich believes that the world’s largest cryptocurrency by market cap is now ready to move out of the $46-52K range and into an aggressive rally. The market analyst stated:
“We are formally seeing the beginning of the Fibonacci pattern, the target of which looks to be the $63.7K area. This is close to historical highs and is unlikely to be the end of the global rally, although a significant shakeout is expected.”
In addition to positive technical analysis, options traders are making calls and bets that target Bitcoin’s current all-time high (ATH) of $69,000. On Deribit, the largest crypto options exchange by open interest and volumes, traders target prices around the ATH, with some pushing higher to $70,000 and $75,000.
In an interview, Galaxy’s Head of Americas Sales, Kelly Greer, described this development as a bullish sentiment among buyers.
“We see a concentration of open interest in $50k calls and have seen flows in $50k, $60k, and $75k in the listed options markets from April to June maturities. These flows demonstrate conviction from buyers willing to pay a premium to take on these positions, suggesting investors have a constructive view on Bitcoin,” said Greer.
Bitcoin and ETF Performance
According to CoinMarketCap data, Bitcoin has jumped more than 19% over the last 7 days, and about 2.5% in 24 hours. Much of the spike in the price of Bitcoin comes from the performance of spot Bitcoin ETFs over the last few days. For instance, the total net inflow of the ETFs on February 13th hit a new record of $631 million, according to SoSoValue. In addition, the net inflows were positive for thirteen consecutive trading days.
Apart from Grayscale, the other spot BTC ETFs pulled in $704 million in net inflows, with BlackRock’s IBIT at the top, at $493 million. This accounted for about 70% of the total daily inflow on the day. Unfortunately, Grayscale is still experiencing heavy outflows, with exits on the day hitting $72.83 million.
There are speculations that issuers of spot Bitcoin ETFs would have a hard time breaking even. Some analysts even believe that they will eventually shut down owing to the fee war among providers. So far, the 10 approved Bitcoin ETFs have received more than $10 billion in assets under management since the SEC’s approval. However, Fidelity and BlackRock control most of this, with $3.5 billion, and $4 billion, respectively.
Hector McNeil, founder and co-CEO of white-label ETF provider HANetf, said most of the existing ETFs will “never even break even as costs will only work if they get to billions of assets under management, which they won’t.” McNeil added that while four or five could breakeven, some others will probably close.
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