Crypto

Bitcoin May Reach $100,000 By US Presidential Inauguration Day, Report Says

As Bitcoin (BTC) continues its remarkable journey, the cryptocurrency has reached new all-time highs (ATH) today. Yet, the market sentiment suggests there could be further gains on the horizon for Bitcoin’s price trajectory. This article delves into the potential developments and forecasts surrounding Bitcoin’s future.

Bitcoin Poised to Reach $100k by Inauguration Day?

In an unexpected turn of events, following the Republican presidential candidate Donald Trump’s victory, Bitcoin has experienced a significant price surge. This rally has allowed the leading digital currency to break through its previous ATH of $73,737, set earlier this year in March.

A comprehensive report by cryptocurrency custodian Copper.co suggests that Bitcoin’s upward momentum could continue into 2025. Fadi Aboualfa, the Head of Research at Copper.co, provided insights, stating, “We have back-tested the ETF accumulation trend against potential price ranges. A $100,000 Bitcoin is quite possible by the time the 47th US President heads to the Capitol for inauguration on January 20, with ETFs holding approximately 1.1 million Bitcoins.”

This forecast takes into consideration historical trends of Bitcoin exchange-traded funds (ETF) accumulation and the recent increase in spot ETF inflows. At present, the total value of net assets held in spot BTC ETFs stands at an impressive $69.28 billion, which accounts for more than 5% of Bitcoin’s total market capitalization.

Interestingly, the research firm had previously predicted that Bitcoin ETFs could accumulate slightly under a million BTC by election day. Their forecast has proven largely accurate, with these ETFs currently holding around 986,000 BTC.

The growing popularity of Bitcoin ETFs continues to demonstrate the increasing institutional interest in the digital asset. Recent reports indicate that the demand for spot Bitcoin ETFs has reached a six-month high. Data from crypto ETF tracker SoSoValue reveals that October 2024 was one of the most active months for BTC ETFs, attracting approximately $3 billion in total net inflows.

Ethereum: Betting Markets Remain Cautious

While Bitcoin has reached unprecedented price levels, the second-largest digital asset, Ethereum (ETH), is struggling to keep up. Despite being a major player in the crypto space, Ethereum continues to underperform.

According to a report by Copper.co, betting markets predict only about a 12% chance of Ethereum hitting a new ATH this year. The report notes, “The lukewarm appeal of ETFs has dampened traders’ mood, though investors seem largely unfazed. While Ethereum is now inflationary, its year-to-date supply growth was just 89k Ether, compared to the 5.7 million coins that have moved into staking.”

However, there is a glimmer of hope for Ethereum ETFs. Recently, the State of Michigan disclosed that the Michigan Retirement System had invested nearly $10 million in ETH ETFs, surpassing its total investment in Bitcoin ETFs.

Despite the encouraging rise in crypto ETF product activities, investors should remain cautious. The digital asset market is notorious for its high volatility over short periods. For example, on November 4, spot BTC ETFs experienced $541 million in single-day net outflows, marking the second-largest outflow since January. Currently, Bitcoin trades at $74,300, reflecting a 6.4% increase in the past 24 hours.

Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories.I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology.My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button