Bitcoin BTC/USD has weathered a turbulent 24 hours, with the cryptocurrency experiencing a 2.3% decline to $64,500.
What Happened: Despite the price dip, underlying investor sentiment remains bullish, driven by significant inflows into Bitcoin spot ETFs.
Data released today reveals a net inflow of $298,900 into Bitcoin spot ETFs on July 31, signaling sustained institutional appetite for the world's largest cryptocurrency.
BlackRock‘s IBIT ETF led the charge with a substantial inflow of $20.9892 million, while Grayscale's mini ETF BTC also saw significant inflows of $17.9954 million, according to data from SoSo Value.
This influx of capital into Bitcoin ETFs suggests that institutional investors are increasingly viewing Bitcoin as a viable asset class.
These fund movements occurred as Bitcoin’s price dipped 2.3% to $64,500.
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Why It Matters: The broader cryptocurrency market exhibited signs of weakness.
Ethereum ETH/USD plunged 3.7% to $3,190, with its spot ETF recording a net outflow of $77.2111 million.
Grayscale‘s ETHE ETF also experienced a substantial outflow of $133 million, data shows.
Despite the short-term volatility, industry experts remain optimistic about the long-term prospects of cryptocurrencies.
Bitcoin analyst Willy Woo presented an ambitious outlook, stating, “Nobody knows what the ultimate price of Bitcoin will be, but simple maths can give us an upper bound.”
Woo suggested a potential price range for Bitcoin between $700,000 and $24 million per coin, based on different allocation scenarios in global wealth assets.
“If we assume 3% as a sensible allocation,” Woo explained, “then the lower bound of valuation is $700k. Price target range: $700k lower bound, $24m maximum bound (in today’s inflation-adjusted numbers).”
QCP Capital offered a more nuanced perspective, noting the Federal Reserve’s dovish stance following the recent FOMC meeting.
They highlighted that while equities rallied on this news, “the rally in equities was not felt in crypto.”
The firm pointed to ongoing concerns about ETH ETF outflows and potential supply pressures from Mt. Gox and US government sales.
Interestingly, QCP Capital also brought attention to emerging discussions among U.S. political figures regarding a sovereign Bitcoin reserve.
They suggested that such developments “could fundamentally alter the cryptocurrency landscape,” potentially establishing a U.S. or sovereign “put” on BTC prices.
These complex market dynamics and forward-looking perspectives underscore the importance of forums like Benzinga’s upcoming Future of Digital Assets event, scheduled for Nov. 19.
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