Bitcoin (BTC) recently soared past the $50,000 mark for the first time since December 2021 and has remained on the rise, currently trading above $51,900. Analysts from on-chain intelligence platform CryptoQuant have attributed the assetâs rise to high demand from the recently approved spot Bitcoin exchange-traded funds (ETFs).
According to CryptoQuantâs latest weekly report, an estimated 75% of new money invested into BTC is coming from ETFs, excluding Grayscaleâs GBTC.
As fresh money enters the market, Bitcoinâs market cap has touched $1 trillion, with the realized capitalization reaching $454 billion, hovering under its all-time high of $468 billion from April 2022. The realized capitalization metric measures the amount of money invested in the leading ecosystem.
The rise in realized capitalization signals demand ahead of major catalysts like the upcoming Bitcoin halving in April, indicating a bullish outlook for the mid-term.
It is worth noting that the amount of new money that has been flowing into Bitcoin is growing at the highest annual rate since mid-2022. The realized cap has also increased by $71 billion in the past year, a sign of rising investment flows and a potential surge in BTCâs price.
The impact of spot Bitcoin ETFs on BTC demand is evident in the substantial portion of the fresh inflows entering the market through the products. Analysts found that $9.5 billion, representing 2% of the total money invested in Bitcoin historically, has come in through the ETFs.
While BTC continues its surge, CryptoQuant has placed the assetâs short-term price target at $56,000 based on the network activity valuation. Analysts believe the target level represents the Metcalfe Price Valuation Band, a metric that evaluates BTCâs price based on active user addresses.
The Metcalfe band signaled a resistance level in April and November 2021 and April 2022, indicating a correction risk around those prices at the time.
Meanwhile, BTCâs price can increase further as unrealized profit margins are still low, hovering around 17%, compared to 30%-40% when the ETFs started trading a month ago.
The post Is BTCâs Price Impacted by the Recently-Approved Spot Bitcoin ETFs? (CryptoQuant Analysis) appeared first on CryptoPotato.
According to CryptoQuantâs latest weekly report, an estimated 75% of new money invested into BTC is coming from ETFs, excluding Grayscaleâs GBTC.
Bitcoin ETFs Are Driving BTCâs Surge
As fresh money enters the market, Bitcoinâs market cap has touched $1 trillion, with the realized capitalization reaching $454 billion, hovering under its all-time high of $468 billion from April 2022. The realized capitalization metric measures the amount of money invested in the leading ecosystem.
The rise in realized capitalization signals demand ahead of major catalysts like the upcoming Bitcoin halving in April, indicating a bullish outlook for the mid-term.
It is worth noting that the amount of new money that has been flowing into Bitcoin is growing at the highest annual rate since mid-2022. The realized cap has also increased by $71 billion in the past year, a sign of rising investment flows and a potential surge in BTCâs price.
The impact of spot Bitcoin ETFs on BTC demand is evident in the substantial portion of the fresh inflows entering the market through the products. Analysts found that $9.5 billion, representing 2% of the total money invested in Bitcoin historically, has come in through the ETFs.
BTCâs Short-term Price Target
While BTC continues its surge, CryptoQuant has placed the assetâs short-term price target at $56,000 based on the network activity valuation. Analysts believe the target level represents the Metcalfe Price Valuation Band, a metric that evaluates BTCâs price based on active user addresses.
The Metcalfe band signaled a resistance level in April and November 2021 and April 2022, indicating a correction risk around those prices at the time.
Meanwhile, BTCâs price can increase further as unrealized profit margins are still low, hovering around 17%, compared to 30%-40% when the ETFs started trading a month ago.
The post Is BTCâs Price Impacted by the Recently-Approved Spot Bitcoin ETFs? (CryptoQuant Analysis) appeared first on CryptoPotato.
![[DK]](/data/avatars/s/57/57999.jpg?1720990206){kind=avatar}
