As Bitcoin (BTC) continues to make headlines by reaching new all-time highs (ATH), the potential for further price gains remains a significant point of discussion among cryptocurrency enthusiasts and investors.
Bitcoin’s Trajectory: Could We See $100k By Inauguration Day?
In the aftermath of the Republican presidential candidate Donald Trump’s victory, Bitcoin surged impressively, surpassing its previous ATH of $73,737, achieved earlier in March this year. The momentum behind Bitcoin’s rise is sparking discussions about its future potential.
A recent report by Copper.co, a well-known cryptocurrency custodian, suggests that Bitcoin’s upward trend might continue well into 2025. According to Fadi Aboualfa, Head of Research at Copper.co, the firm has thoroughly analyzed ETF accumulation trends in relation to potential price ranges. Aboualfa notes, “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.”
The forecast from Copper.co is based on historical Bitcoin exchange-traded funds (ETF) accumulation patterns and a noticeable increase in spot ETF inflows. Currently, the total value of net assets held in spot BTC ETFs is valued at $69.28 billion, representing more than 5% of Bitcoin’s total market capitalization.
Interestingly, Copper.co had previously predicted that Bitcoin ETFs might hold just under a million BTC by election day. Presently, these ETFs contain approximately 986,000 BTC, validating the accuracy of Copper.co’s forecasts. The growing interest in Bitcoin ETFs underscores the sustained institutional interest in this digital asset. Recent data indicates that the demand for spot Bitcoin ETFs has reached a six-month high.
According to data from crypto ETF tracker SoSoValue, October 2024 emerged as one of the most active months for BTC ETFs, with these financial products drawing in around $3 billion in total net inflows.
Ethereum: A Different Story in Betting Markets
While Bitcoin continues to break new ground in terms of price, Ethereum (ETH), the second-largest digital asset by market capitalization, is not witnessing the same level of enthusiasm.
According to Copper.co’s report, the outlook for Ethereum is less optimistic, with betting markets predicting only about a 12% chance of ETH achieving a new ATH this year. The report highlights that “the lukewarm appeal of ETFs has dampened traders’ mood, though investors seem largely unfazed.” Although Ethereum has become inflationary, its year-to-date supply growth remains modest at 89,000 Ether, compared to the 5.7 million coins that have moved into staking.
Despite the current challenges, not all is bleak 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.
While the increased activity in crypto ETF products is encouraging, investors are advised to exercise caution due to the digital asset market’s notorious volatility. For example, on November 4, spot BTC ETFs experienced substantial net outflows of $541 million in a single day, marking the second-largest outflow since January. At the time of writing, Bitcoin is trading at $74,300, reflecting a 6.4% increase over the past 24 hours.
