Bitcoin ETFs experience a surge in inflows, significantly outpacing gold as institutional interest rises. Standard Chartered projects Bitcoin could hit $120K by Q2, driven by increasing market volatility and capital shifts. Analysts observe strong investor confidence, with over 85% of Bitcoin’s supply in profit. While optimism grows, the futures market remains cautious, and Tether’s latest report shows its gold-backed token adds an intriguing layer to the discussion.
In a notable twist in the investing world, Bitcoin ETFs are seeing a surge in inflows while gold is lagging behind. Analysts from Standard Chartered are particularly optimistic, raising the target price for Bitcoin to an eye-watering $120,000 as renewed institutional interest buoy the crypto. This optimism comes right as the market faces uncertainties alongside escalating trade tensions, raising Bitcoin’s profile as a solid alternative to traditional assets like gold.
According to reports, Bitcoin is moving closer to hitting resistance levels, with a recent jump beyond $94,000. The next key milestone appears to be at $95,765, and surpassing this could trigger a bullish trend that might see BTC aiming towards $102,239. The current market dynamics reflect a shift toward Bitcoin as it stands to benefit from capital flight instigated by increasing US tariffs and market instability.
Standard Chartered’s Head of Digital Asset Research, Geoff Kendrick, forecasts upcoming bullish momentum for Bitcoin, reminiscent of its climb post the 2024 US presidential election. The bank links this upland trajectory to the rapid inflow into Bitcoin ETFs, highlighting how these inflows are contrasting with a drop in gold ETP inflows. Last time there was such a disparity was during the US election week, ramping up speculation about Bitcoin’s potential.
With the bullish sentiment building, Kendrick stated he anticipates Bitcoin’s price not only to soar to $120,000 in Q2 but ultimately to land at $200,000 by the end of 2023, substantially above last month’s peak of around $103,713. Standard Chartered is also hopeful for a staggering $500,000 mark by 2028. Comparatively, the investment trends indicate greater interest in Bitcoin compared to gold, suggesting that investors are considering Bitcoin as a favoured hedge against traditional financial instruments.
In the crypto space, there are some intriguing data points to note. Currently, over 85% of Bitcoin’s circulating supply is in profit, signalling robust investor confidence. However, the futures market for Bitcoin is adopting a more cautious stance, leaning towards bearish options despite the high demand for ETFs. Other updates include the BNB Chain slashing its block times, putting pressure on competitors like Ethereum, which is dealing with its own development disputes.
Moreover, while Tether’s recent report shows their tokenized gold, XAUT, is backed by over 7.7 tons of physical gold, there’s a growing suspicion about stablecoin transaction volumes being manipulated by bots and wash trades. Meanwhile, virtual assets are heating up, with tokens like VIRTUAL enjoying a significant surge as AI activity steadily rises. Stay tuned as these developments continue to unfold in the complex landscape of crypto investing.
