Bitcoin Price Tipped to Hit $50,000 in Weeks on ETF Hype

Technology

How Bitcoin Price 35% Monthly Surge Will Trickle Capital Down To Large And Low-Cap Altcoins – Crypto News

Published

2 years ago

February 15, 2024

Dripp

Bitcoin price maintains a positive outlook buoyed by increasing demand for the spot BTC ETFs. As institutions and traditional investors stream into the market, buying ETF shares on stock exchanges like Nasdaq boosts capital inflow, which in addition to fuelling the rally, backs Bitcoin as a mature global asset.

Following the dip to $48,000 on Tuesday amid the instability caused by the unfavorable US CPI report, Bitcoin embarked on an up-facing trajectory that has seen it blast above $52,000.

2024 Bull Run: How Capital Moves From Bitcoin To Altcoins

Altcoins also reacted favourably moving in tandem with BTC. Ethereum, for instance, soared above its January peak at $2,700. The largest smart contracts token shows signs of climbing above $2,800 on Thursday and rallying above $3,000 in the next few days.

Other altcoin majors like Solana (SOL), Avalanche (AVAX), Polkadot (DOT), and Uniswap (UNI) surged in double digits in the last seven days. SOL, at the forefront of this rally, hit at $118 mark on Wednesday after diving to $80 from the December peak of $125.

While the 2024 bull run will be driven by Bitcoin, analysts expect the capital to rotate to different altcoin classes with time. According to Rekt Capital, a popular analyst, and trader, capital currently flowing into BTC from fiat will start to redistribute to large-cap altcoins, followed by mid-caps and lastly low caps.

#BTC has rallied +35% in the past 4 weeks

All that capital is going to have to rotate somewhere after the current move cools down$BTC #Crypto #Bitcoin pic.twitter.com/4sXxRM3LIK

— Rekt Capital (@rektcapital) February 15, 2024

This outlook of the market and bull run projects could imply that it is a good idea to diversify the crypto portfolio to include Bitcoin and different altcoins based on their market caps.

Bitcoin is currently the most valuable digital asset with a 52.3% dominance, translating to a $1 trillion market cap. It is common practice for investors to sell BTC as it rises and take positions in altcoins which tend to join the later stages of the bull market.

Bitcoin Price Prediction As ETF Net Inflow Rise To $4.2B

The spot ETF was a much-needed investment product as it gives institutions and traditional investors access to Bitcoin and crypto without dealing with the complexities of the market.

Less than two months since the ETFs started trading in the US, more than $4.2 billion in cumulative total net inflow has been achieved. For 14 days in a row, the daily total net inflow sustained an upward streak.

According to SoSoValue, on February 14th, the total net inflow for Bitcoin spot ETFs was $339 million, marking fourteen consecutive trading days of net inflows. Grayscale ETF GBTC experienced a net outflow of $131 million in a single day, while Invesco’s Bitcoin ETF BTCO saw a… pic.twitter.com/nu7H2pPKph

— Wu Blockchain (@WuBlockchain) February 15, 2024

In addition to increasing demand for BTC, this spectacular performance validates Bitcoin’s expected rally in 2024. Coupled with growing optimism for the halving due in April, the risk appetite for Bitcoin is soaring to the roof, thus keeping prices moving higher.

The prevailing technical structure on the weekly chart shows no signs of the uptrend taking a breather in the short term. Traders were quick to jump on the dips below $51,500 on Wednesday, which aggressively ignited momentum for gains above $52,000.

It is becoming apparent that $52,000 is turning into solid support. For intraday traders, keeping their current positions open would allow them to take liquidity above $53,000.

The Moving Average Convergence Divergence (MACD) backs the bullish thesis above the $4,000 mark. If short-term support at $52,000 is breached, Bitcoin could retest the $50,000 level to collect liquidity as people buy the dip.