Future of Bitcoin Price: Will the Bullish Momentum Continue? Why?

23 Temmuz 2024

Today’s market analysis on behalf of Rania Gule Market Analyst at XS.com

Future of Bitcoin Price: Will the Bullish Momentum Continue? Why?

Bitcoin (BTC) rose by 5.5% this week up to Friday, starting Tuesday’s trading at $67,080 after breaking through the main trendline. U.S. Bitcoin spot ETFs have seen cumulative positive flows of $861.50 million.

I believe that the high expectations of former President Trump’s victory, especially after Biden’s withdrawal, represent a strategic play for Bitcoin. This is not only because the former president is a stronger supporter of cryptocurrencies, but also because it would facilitate the adoption of cryptocurrency projects due to inevitable changes in the SEC’s regulatory stance.

In my view, Bitcoin’s price movement will heavily depend on factors such as lower tax rates and inflationary pressures caused by global uncertainty regarding the status of the U.S. dollar reserve. We might wonder what could happen if Bitcoin becomes a global ” haven” due to geopolitical uncertainty and a decline in the dollar as a reserve currency. In my opinion, this means Bitcoin could be what countries, investors, and individuals are looking for to protect savings and preserve value.

This suggests a potential increase in investor confidence and a short-term rise of 5.5% in Bitcoin’s price. Monitoring net flows of spot ETFs is crucial to understanding market movement and investor sentiment. Recently, total Bitcoin reserves held by U.S. spot ETFs have reached $52.22 billion.

Ethereum (ETH) fell by about 1% after the SEC confirmed on its website that it had given final approval for Ethereum spot ETFs. Given the launch of the Ethereum ETF and the upcoming Bitcoin conference, this week could be significant for Ethereum and the digital market as a whole, especially with several potential bullish catalysts in the medium and long term.

The New York Stock Exchange has confirmed it received approval to list and start trading Grayscale Ethereum Trust and Bitwise Ethereum ETF on Tuesday. Earlier, the Chicago Board Options Exchange revealed that Fidelity Ethereum Fund, Franklin Ethereum ETF, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and 21Shares Core Ethereum ETF would also start trading on Tuesday.

The Bitcoin Conference 2024 will begin on July 25, including discussions about Republican candidate Donald Trump’s potential Bitcoin strategy in the U.S., and Bitcoin is expected to see a short-term rise. I anticipate that Ethereum will benefit significantly from the rise due to its positive correlation with Bitcoin.

It seems to me that traditional investors are optimistic about the launch of Ethereum ETFs, as investment products saw inflows of $45 million last week, according to CoinShares data. This move has increased its year-to-date net flows to $103 million.

Therefore, I expect Ethereum ETFs to see inflows ranging from $3 to $5 billion over the next six months, which will likely lead to positive momentum dominating Bitcoin, Ethereum, and cryptocurrencies overall.

 

Zaid Barem / YMM