Important Points
- The potential for Bitcoin to attain six-figure values is underpinned by heightened whale accumulation and rising ETF interest, among other influences.
- Institutional investment in Bitcoin is accelerating, with US Bitcoin ETFs amassing over $20 billion in less than ten months.
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Bitwise CIO Matt Hougan anticipates that Bitcoin will soar to six-figure levels as various significant elements converge, such as increased whale accumulation and a decrease in Bitcoin supply post-halving.
Recently, Bitcoin whales acquired an astounding 60,000 BTC in just 24 hours. Crypto analyst Quinten Francois noted that this is an exceptionally high volume of purchasing activity from substantial investors.
Never in the history of #Bitcoin have whales been buying $BTC this aggressively pic.twitter.com/2DIw33c3HW
— Quinten | 048.eth (@QuintenFrancois) October 18, 2024
Experts view this aggressive buying pattern as an indication of whales’ renewed confidence in Bitcoin’s price potential. Typically, whales accumulate large amounts of an asset when they foresee a substantial increase in its value.
The escalating demand for Bitcoin ETFs is also expected to significantly bolster institutional investment in Bitcoin, which could drive prices up, according to Hougan.
Since launching less than ten months ago, US spot Bitcoin ETFs have recorded over $20 billion in net inflows. For comparison, it took gold ETFs about five years to achieve this level of success.
Hougan also mentions the imminent US presidential election as a contributing positive factor for Bitcoin’s value. Bitcoin and the entire crypto sector have taken a notable role in this election cycle.
Several significant candidates, including Donald Trump and Kamala Harris, have expressed supportive positions regarding the industry. Analysts consider that Bitcoin stands to gain from this situation, irrespective of who claims the presidency.
Examining the economic landscape, rising national debt in the US, stimulus measures from China, and global monetary shifts could also contribute to an uptick in Bitcoin’s value. Central banks worldwide, including the Fed, are revising their monetary strategies to invigorate their economies.
Recently, the ECB reduced interest rates by 25 basis points, following the Fed’s aggressive rate cuts last month. Market analysts foresee two additional rate cuts from the Fed in the upcoming FOMC meetings in November and December, with a 25 basis-point cut appearing likely as of October 18, according to CME FedWatch.
