In a recent analysis, a crypto market expert has discovered key elements that could cause a massive rise in the Bitcoin price.
Crypto Expert Reveals Bitcoin Price Rise Catalyst
Head of Research at CoinShares, James Butterfill has published an in-depth analysis of a revelation that could cause a significant increase Bitcoin’s price. Butterfill’s research takes a deep dive into the current dynamics of the crypto market surrounding the potential adoption of Discover Bitcoin ETFs and the influx that could follow.
Using an analysis of universeButterfill concluded that if 10% of the US’s $14.4 trillion addressable assets went to Spot Bitcoin ETFs, each with an allocation of 1%, there would be an inflow of more than $14.4 billion. If the predictions come true, Butterfill has stated that this would mark the largest inflow ever seen in the financial markets.
“You could assume that maybe 10% invest in a spot bitcoin ETF with an average allocation of 1%, which equates to an inflow of $14.4 billion in the first year. If true, it would have been the largest inflows ever, with the largest to date in 2021, when there were $7.24 billion in inflows, representing 11.5% of assets under management,” Butterfill said.
The crypto expert also highlighted a clear correlation between assets under management (AuM) inflows and price changes, suggesting that price increases occur around the same time as inflows increase.
“There appears to be a relationship between inflows as a percentage of assets under management and the price change. The influx seems to coincide; in the week that prices rise, the flows also flow, instead of one leading the other,” Butterfill said.
Expert Predicts Huge BTC Spike as Trigger Events Unfold
James Butterfill also predicted in his research that the price of Bitcoin could rise to $141,000 if driven by $14.4 billion inflows.
He expressed reservations about his deductions, citing the fact that it would be difficult to accurately estimate the size of the inflow that would occur if Spot Bitcoin ETFs were introduced.
“If we take the aforementioned $14.4 billion inflow, the model suggests this could push the price up to $141,000 per Bitcoin. The problem with estimating inflows is that it is very difficult to determine exactly how much inflows there will be when the spot ETFs are launched,” Butterfill said.
Butterfill also acknowledged the uncertainties surrounding it demand for Spot Bitcoin ETFs after its possible approval. He stated that there are many variables, both regulatory and business, that can significantly influence the perception of these types of issues The role of Bitcoin in society.
“Ultimately, it is very difficult to determine how large the potential demand wall will be once a spot-based ETF is launched. We know it effectively diversifies a portfolio and improves Sharpe ratios, but regulatory approval and corporate adoption are slow-burn issues due to Bitcoin’s perceived complexity,” Butterfill concludes.
BTC recovers to $37,200 | Source: BTCUSD on Tradingview.com
Featured image from Bitcoin News, chart from Tradingview.com
