Trading firm QCP Capital has shared its thoughts on what could drive the flagship cryptocurrency, Bitcoin, to its all-time high (ATH) of $69,000. From their analysis, Spot Bitcoin ETFs have a huge role to play in all of this.
Bitcoin Hitting $69,000 Dependent On Spot BTC ETFs
QCP Capital stated that revisiting its ATH of $69,000 will depend on the “genuine flows the actual ETF will bring in the first few weeks of trading.” If the inflows are below par, the trading firm noted that it could set things up 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 so far enjoyed incredible gains on the back of optimism that the SEC is going to approve these Spot Bitcoin ETFs. Bitcoin has already risen to as high as $45,000 this month and is said to be up 15% MTD in the first week.
With this in mind, QCP Capital is conscious of the fact that investors are most likely already positioned for an approval order by the SEC. If that is the case, Bitcoin and the broader crypto market will need something else to sustain this bullish momentum. That is why the trading firm has singled out liquidity flowing into these Spot Bitcoin ETFs as being key.
Renowned Economist Peter Schiff had previously warned of a possible sell-the-news event when he mentioned that Bitcoin is unlikely to rally again once a Spot BTC ETF is approved. That is because he believes that the current Bitcoin rally is a result of many already ‘buying the rumor.’ As such, once approval comes, the next thing could be these ‘investors selling the news.’
BTC price recovers from flash crash | Source: BTCUSD on Tradingview.com
Capital Expected To Flow Into These Spot BTC ETFs
There is reason to believe that enough liquidity will flow into these Spot Bitcoin ETFs and the Bitcoin ecosystem to sustain the current market rally. Crypto research firm Galaxy Digital once published a report that stated that these funds could see $14 billion of inflows in the first year of launch.
Specifically, Galaxy Digital estimates that these funds will see an adjusted inflow of over $10 billion in their first month. These inflows should be enough to sustain Bitcoin’s rally as the research firm projects that Bitcoin’s price could see a 74.1% increase in the first year of these funds launching.
Meanwhile, Blockchain analytics firm Glassnode is of the opinion that an approval order by the SEC will bring in a substantial influx of investors. They predict that about $70.5 billion could flow into Bitcoin due to increased demand from institutional investors.
Featured image from Easy Crypto, chart from Tradingview.com
