Bitcoin, the world's largest digital asset, was once again on the agenda on Friday, briefly surpassing the fully diluted $1 trillion valuation.
The global cryptocurrency market cap currently stands at a staggering $1.87 trillion and is up 4.7% in the last 24 hours. While Bitcoin continues to dominate the market with a 49.7% share, Ethereum lags behind with 16.1%.
Geoff Kendrick, Head of Crypto Research at Standard Chartered, attributes the recent Bitcoin rally to “changing flow dynamics in new US ETFs.” He noted a decline in cumulative flows into GBTC while other funds, such as BlackRock's iShares Bitcoin Trust, saw increases.
“While GBTC sales appear to have slowed, falling to an average of $59 million per day this week, flows into other ETFs remain strong, averaging $244 million per day this week. This change is enough to push Bitcoin higher,” Kendrick explained.
Looking forward, Kendrick estimates there will be a net inflow of $50 billion to $100 billion into spot ETF funds this year. Kendrick predicts that “GBTC outflows will completely stop at some point and other inflows will continue,” potentially pushing the Bitcoin price to $100,000 by the end of 2024 and $200,000 by the end of 2025.
*This is not investment advice.
