According to TradingView data, yesterday Bitcoin (BTC) recorded its highest daily gain since October 23, with a 9.5 percent increase.
Prices rose to $64,000 on various exchanges, reaching the highest level since November 2021. This parabolic move from Monday's high of around $51,500 was attributed to Wall Street's adoption of spot-based Bitcoin ETFs. The CoinDesk 20 Index, which tracks the crypto market extensively, is up over 10% this week.
The general consensus is that the rally will continue in the coming months and prices will rise to six figures.
âOur analysis predicts a price target of $100,000-$120,000 will be reached by Q4 2024, with a peak in terms of overall crypto market cap in 2025,â analysts at crypto exchange Bitfinex said.
"ETFs have introduced 'passive demand,' meaning demand is largely coming from investors who are price agnostic. They perceive Bitcoin as a store of value rather than a fungible and volatile asset, as it was a few years before ETFs were introduced." " he added.
Earlier this week, technical analyst Peter Brandt said Bitcoin could reach $200,000 by September 2025.
These predictions are sure to cheer up directional traders. However, directional traders are no less apt, as cash and carry arbitrage yields returns three times greater than the so-called risk-free rate on the 10-year U.S. Treasury bond.
According to blockchain analytics firm Glassnode, the Bitcoin cash and carry strategy, which includes three-month futures, yields over 14 percent. This is more than three times the 4.27% 10-year Treasury yield and 2.8 times the 5% 1-year Treasury yield.
Relatively higher returns could attract more money into the crypto market.
