Optimism about Bitcoin price prospects is palpable among industry figures. Arthur Hayes has predicted a BTC climb to $70,000 by year-end, emphasizing his bullish stance on Bitcoin’s prospects.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
Bitcoin price has once again broken through the $51,000 barrier, marking a remarkable milestone by surpassing the $1 trillion market capitalization threshold for the first time since December 2021, according to CoinMarketCap data.
This surge comes amidst a wave of bullish sentiment surrounding the continued growth of the world’s largest cryptocurrency. Options traders are increasingly betting on even higher prices, with some eyeing targets as high as $75,000 in the coming months.
Traders are setting their sights on the $64,000 level in the near term, driven in part by escalating demand from spot Bitcoin Exchange-Traded Fund (ETF) products. Tuesday saw substantial activity in this realm, with BlackRock Inc’s (NYSE: BLK) IBIT witnessing nearly $500 million in net inflows, indicative of robust buying demand and investor confidence.
The spot BTC ETF market has proven that a new era is in as insitutional investors now have a legitimate vehicle to invest in the coin.
Additionally, the release of the latest data on the Consumer Price Index (CPI) by the United States Bureau of Labor Statistics revealed a higher-than-expected increase, climbing 3.1% annually compared to the anticipated 2.9%
This spike, particularly driven by the housing sector, has raised concerns among economists about the Federal Reserve’s ability to curb inflation effectively. As a result, expectations for early rate cuts in the US may be delayed as policymakers seek to address the persistent inflationary pressures.
Following the CPI data release, both major stock indexes and the crypto markets experienced retracements from prior gains. Bitcoin’s sudden bullish breakout led to the liquidation of approximately $200 million, primarily affecting short traders. Nevertheless, Ethereum (ETH) and Solana (SOL) also joined the upward momentum, contributing to a broader rally in the altcoin market.
Adding to the intrigue of Bitcoin’s increase is the accelerated accumulation by BTC whales in recent weeks. According to on-chain data analysis from Santiment, whales have acquired a staggering 140,000 Bitcoins worth over $6.3 billion in just three weeks. This heightened appetite from institutional investors is reflected in the weekly CoinShares report, which highlights Bitcoin’s dominance in the $1.1 billion cash inflows to digital assets investment products last week.
Notably, optimism about Bitcoin price prospects is palpable among industry figures. BitMEX co-founder Arthur Hayes has boldly predicted a climb to $70,000 by year-end, emphasizing his bullish stance on Bitcoin’s prospects. Similarly, Ki Young Ju, CEO of crypto analytics company CryptoQuant, envisions new highs for Bitcoin, projecting potential prices between $104,000 and $112,000.
At present, Bitcoin is trading at $51,380, representing a 2.7% increase over the past 24 hours, with its market capitalization reaching a milestone of $1 trillion. As the crypto market continues to grow and mature, the conditions driving Bitcoin’s rise remain subject to both economic indicators and investor sentiment, shaping the trajectory of digital assets in the months ahead.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
