Markets

Bitcoin is poised for a major move as market conditions stabilize

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Bitcoin the markets went through a period of calm after months of significant distribution pressure.

While capital inflows have remained subdued, reduced selling activity and compressing volatility suggest a significant move may be imminent.

Arthur Hayes, a leading voice in the crypto community, highlights the importance of the US dollar-yen exchange rate, which he believes is a key global economic variable.

He expects the rate of depreciation of the yen to accelerate in the autumn. In light of the depreciation of global fiat currencies, Hayes argues that Bitcoin stands out as the best-performing asset. He even suggests that the influx of funds into Bitcoin could push its price to $1 million or more.

Standard Chartered analyst Geoff Kendrick adds optimism by predicting that the ETH SPOT ETF will be approved this week. Kendrick expects this approval to lead to inflows of between $15 billion and $45 billion in the first 12 months, potentially pushing ETH to $8,000 by the end of 2024. He also predicts that Bitcoin will reach $150,000 by the end of 2024.

Net inflows into Bitcoin ETFs continue to post radically positive records

On May 20, 2024, net inflows into Bitcoin ETFs totaled $237 million, marking six consecutive days of positive net inflows, indicating strong buying activity. Grayscale’s GBTC recorded its fourth consecutive day of inflows, albeit with lower volumes. The largest inflow of the day was recorded by ARK 21Shares (ARKB) with $68.3 million, followed closely by BlackRock (IBIT) with $66.4 million.

This consistent inflow of funds into Bitcoin ETFs suggests growing investor confidence and interest. As market conditions stabilize and key economic factors align, Bitcoin and other cryptocurrencies appear poised for significant gains in the coming months.

The early approval of the ETH SPOT ETF and the potential for substantial capital inflows further strengthen the positive outlook for the cryptocurrency market.

Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.

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Image source: peshkov/123RF // Image effects of Colorcinch



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