Since the United States Securities and Exchange Commission (SEC) gave its approval to exchange-traded fund (ETF) applications, Bitcoin has been at the forefront of the spotlight. To tell you the truth, Bitcoin has never truly been out of the spotlight. As a matter of fact, the approbation has contributed to it gaining greater notice all over the globe. Despite the fact that they are aware of pessimistic reasons, crypto fans are cautiously confident that the token will increase in value over the next several days. A number of reasons, including macroeconomic circumstances, comparisons to gold, and inflows into exchange-traded funds, contribute to bullish emotions.
Inflows of ETFs and Outflows of GBTC
It has been suggested that GBTC is a significant factor in the fact that Bitcoin is rising at a lower value. It was clear from the selling pressure that now was the moment to either exit the market or begin amassing the token before it reaches a stage where it would begin to increase in value. Quite a few people chose the latter option, but others gave in to the flood of negativity.
There is now a fresh inflow of 170,628 BTC into the US ETF, while the outflow of GBTC is currently at 132,136 BTC. The amount of selling pressure is coming down, and net flows are just about to start climbing the ladder. At this time, the current margin accounts for 3.29 percent of the total supply of Bitcoin.
Compare Bitcoin to Gold
It is only logical to draw a comparison between Bitcoin and gold, given that Bitcoin has been described as a store of value and a superior alternative to the commodity that is currently on the market. Bitcoin ETF flows have reached $1.7 billion during the first 14 days of trading; this puts it ahead of gold by $0.4 billion, which is at $1.3 billion in terms of ETF flows. Gold is now the market leader in terms of ETF flows.
Considering that the new exchange-traded fund (ETF) is superior, analysts feel that there is a movement in investing interest away from gold and toward bitcoin. Holders are confident that the value will climb to ATH before the end of this year, despite the fact that it is not necessarily tied to the value of Bitcoin.
Based on the Bitcoin price prediction, it is anticipated that the token may reach the significant milestone of $100,000 by the end of 2025, which is the following year. BTC is now trading at $42,988.38, representing a rise of 1.65% over the course of the last twenty-four hours.
Patterns in the Macroeconomy
Some of the factors that are considered to be macroeconomic trends are the Federal Reserve's announcement to reduce interest rates, China's decision to create more money, the likelihood of Hong Kong approving the Spot Bitcoin ETF, and the resolution of the financial crisis in the United States. All of the elements, regardless of which one is chosen, indicate that there will be an increase in the amount of liquidity that is brought in to support the adoption of hazardous assets.
A potential announcement by the Federal Reserve Bank that it would reduce interest rates might result in a surge in the value of Bitcoin. Although there is no specific timetable for this, many people believe that it might happen as early as the second quarter is possible. When money is printed in a chain, it indicates that there may be a change in the flow of liquidity.
The approval of exchange-traded fund applications in Hong Kong will drive the boom, and the United States joining Chain in money production will increase its power. On the basis that the United States of America wishes to prevent the next financial crisis that follows the SVB crisis, a case is made for the nation.
Over the course of the last three years, there has been a statistically significant inverse relationship between Bitcoin and the DXY chart. On the other hand, there have been instances in which variables that are special to cryptocurrencies have overshadowed dollar patterns. As a result of the fall of FTX in late 2022, Bitcoin saw a precipitous decrease, which discouraged investors from applauding the dollar's decline.
The opposing viewpoints
A possible bull run for Bitcoin is supported by both the data and the macro forecast. However, if there is one thing that crypto aficionados have learned from the past, it is that volatility is a brutal element that may alter values at any time. In addition, the majority of optimistic assumptions are founded on the idea that everything would turn out for the better in terms of Bitcoin market conditions.
On the other hand, the acceptance of Bitcoin by institutions and the economic environment are beneficial for Bitcoin.
Final Thoughts
As a result of the fact that individuals will either be bullish or bearish at some time in their lives, it is only normal for them to have worries that are bearish. One of the factors that has contributed to the present low in the market is the fact that the selling pressure has begun to decrease. Following that, there is the possibility of an increase in the cryptocurrency market, particularly for Bitcoin.
