There’s news from K33 Research, a leading analytics firm. Today he announced an important prediction regarding Bitcoin. There will be an improvement in the first 10 trading days of spot Bitcoin exchange-traded funds (ETFs), according to the company. Accordingly, there will be a flow of over 30,000 BTC, amounting to approximately $1 billion. This significant capital injection will draw attention. Because it has the potential to increase the price of Bitcoin above $ 42,000 in the first 100 days after approval. So Bitcoin can do 2x.
Analysis of historical data for Bitcoin
Vetle Lunde, a seasoned analyst at K33 Research, lays out a baseline for making this prediction. Based on entry patterns observed following the launch of ProShares Bitcoin Futures ETF (BITO) and Purpose BTC ETF (BTCC). These historical precedents provide valuable insight into the potential impact of spot Bitcoin ETFs.
K33 Research’s analysis shows that approval of the spot Bitcoin ETF could trigger a significant 66% bullish rally. He also suggests that Bitcoin could increase its price to $42,000 within the first 100 days after approval. On the other hand, going above this figure will also mean 2x. This estimate underlines that the impact of the approval of a spot Bitcoin ETF on the cryptocurrency market has been underestimated. On the other hand, it highlights the strong correlation between significant entries and upside momentum.
Ascension perspective
Vetle Lunde emphasizes that the market is potentially underestimating the profound impact of US Bitcoin ETFs. He also addressed these predictions and stated that “there has been a strong relationship between strong BTC investment instrument inflows and appreciating BTC prices in the last four years.” Lunde believes the prospects for US spot ETF approval have never been better.
What happens if the US Securities and Exchange Commission (SEC) greenlights spot Bitcoin ETFs? Lunde foresees a significant capital inflow. He predicts total inflows of up to 100,000 BTC into various Bitcoin investment avenues both domestically and abroad within four months. It also draws parallels with Canada, where the Purpose Bitcoin ETF attracted 11,141 BTC in the first four months post-launch. Lunde expects an even more pronounced impact in the US, given its broader market coverage.
Comparison with BITO’s performance
Lunde highlights BITO’s impressive entry of 19,425 BTC in its first ten trading days. He also states that this ETF has a significant first mover advantage in the US market. On the other hand, he noted that U.S. spot-based ETFs offer superior orientation compared to futures-based ETFs due to rounding costs. This indicates that spot ETFs in the US could potentially attract higher entries from BITO.
As of now, Bitcoin is trading at $25,867. It also points to a 12.3% price drop over the past month. Bitcoin has faced challenges, especially since the SEC delayed its decision on seven BTC ETF proposals. Despite the recent challenges, the crypto market awaits potential developments regarding spot BTC ETFs. Accordingly, when we look at cryptokoin.com, it closely monitors their potential impact on Bitcoin’s price trajectory.
59961
