A new suggests that Bitcoin BTC/USD may surge to $101,694 by January 27, 2025, buoyed by strong market momentum and increasing institutional demand through spot ETFs.
What Happened: The report, by 10x Research, highlights Bitcoin’s resilience as it reached a six-month high, a milestone that has historically led to a median three-month return of +40%. If this trend holds, Bitcoin is expected to cross the $100,000 mark early next year.
"We're seeing Bitcoin absorb market energy from altcoins, much like a gravitational black hole," 10x Research analysts noted.
Bitcoin dominance, the percentage of the total crypto market cap that Bitcoin represents, has climbed from 38% to 58%, its highest level since April 2021.
This dominance signals a "powerful gravitational pull" within the crypto ecosystem, where Bitcoin is increasingly viewed as a safer, more reliable asset compared to altcoins, especially those lacking substantial use cases.
The report attributes this growing momentum partly to the ongoing surge in Bitcoin spot ETFs, which accumulated $4.1 billion in October 2024 alone.
Spot ETFs added an additional $830 million in Bitcoin just last night, bringing their five-day total to $2.1 billion, reinforcing Bitcoin's demand from institutional investors.
“With spot ETF demand going parabolic, Bitcoin is set to follow suit,” the report stated. Analysts expect this trend to propel Bitcoin toward the $100,000 mark, with January 2025 as a critical timeline for achieving this milestone.
According to data from SoSo Value, Bitcoin spot ETF had a total net inflow of $870 million on Oct. 29, the highest single-day net inflow since June 5.
The highest secondary net inflow was $1.05 billion on Mar. 12, and the second highest was $887 million on Jun. 4.
BlackRock’s ETF IBIT had an inflow of $643 million and Fidelity’s ETF FBTC had an inflow of $134 million, on Oct. 29.
Ethereum ETH/USD spot ETFs had a total net inflow of $7.65 million.
The total net asset value of the Bitcoin spot ETFs is $72.5 billion, and the market value of the ETF’s net assets accounts for 5.07% of the total market value of Bitcoin, which is the first time in history that it has exceeded 5%.
Unlike in March 2024, when crypto exchanges saw significant BTC inflows—often a precursor to selling—the current data suggests minimal selling pressure even as Bitcoin approaches its previous all-time highs.
This relative scarcity of sellers reflects a broader shift in sentiment, positioning Bitcoin not as a speculative asset but as a "buy-and-hold hedge," as advocated by BlackRock's BLK CEO Larry Fink.
Meanwhile, analysts at QCP Capital highlighted the impact of rising Bitcoin demand through spot ETFs, which acquired an impressive $4.1 billion in October alone, along with an additional $830 million in just the past five days.
“With ETF demand going parabolic, Bitcoin is set to follow suit,” 10x Research stated, noting this influx as a significant driver toward Bitcoin’s projected $100,000 milestone.
QCP Capital added that this "robust inflow into spot ETFs" is among the main catalysts propelling Bitcoin's price upward alongside "fresh monetary easing cycles across major economies" and the potential for a Trump victory.
The prospect of a crypto-friendly president has gained traction in recent weeks, with swing states like Nevada and Pennsylvania reportedly leaning toward Trump.
With the election results expected soon, the so-called “Trump Trade” has contributed to Bitcoin's recent gains, positioning the asset as a potential hedge against the uncertain regulatory landscape that has characterized the current administration.
What’s Next: The insights from 10x Research are timely as Benzinga’s Future of Digital Assets event, set for Nov. 19, will gather leading voices in the crypto space to discuss evolving trends in digital finance.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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