Trading firm QCP Capital has shared its thoughts on what the driver could be flagship cryptocurrency, Bitcoin, to an all-time high (ATH) of $69,000. Their analysis shows Discover Bitcoin ETFs play a major role in all of this.
Bitcoin Reaches $69,000 Depending on Spot BTC ETFs
QCP Capital declared that revising the $69,000 ATH will depend on the “real flows that the actual ETF will deliver in the first few weeks of trading.” If the inflow are substandard, the trading firm noted that they are doing business for the classic sell-the-news moment.
This assumption seems to stem from their belief that the news could already be priced in. They highlighted how Bitcoin has made incredible gains so far thanks to optimism that the SEC will approve these Spot Bitcoin ETFs. Bitcoin has already risen to $45,000 this month and the MTD is said to have risen 15% in the first week.
With this in mind, QCP Capital is aware that investors are most likely already eligible for a clearance order from the SEC. If that’s the case, Bitcoin and the broader crypto market will need something else to keep this bullish momentum going. That’s why the trading company chose this one liquidity flows in these Spot Bitcoin ETFs as crucial.
Renowned economist Peter Schiff had previously warned of a possible sell-the-news event when he named that Bitcoin is unlikely to rise again once a Spot BTC ETF is approved. That’s because he believes the current Bitcoin rally is a result of many already buying the rumor. Once approved, the next thing could be these “investors selling the news.”
BTC price recovers from flash crash | Source: BTCUSD on Tradingview.com
Capital is expected to flow into these spot BTC ETFs
There is reason to believe that sufficient liquidity will flow into these Spot Bitcoin ETFs and the Bitcoin ecosystem to support the current market rally. Crypto research firm Galaxy Digital ever published a report stating that these funds could see inflows of $14 billion in the first year after launch.
Specifically, Galaxy Digital estimates that these funds will see adjusted inflows of more than $10 billion in the first month. These inflows should be enough to sustain Bitcoin’s rally as the research firm predicts that Bitcoin’s price could see an increase 74.1% increase in the first year that these funds started.
Meanwhile, Blockchain analytics firm Glassnode believes that a clearance order from the SEC will bring a substantial influx of investors. She predict that about $70.5 billion could flow into Bitcoin due to increased demand from institutional investors.
Featured image of Easy Crypto, chart from Tradingview.com