Bitcoin Price Soars Amid Optimism Around Bitcoin Spot ETFs
Anticipation of spot ETF approval has led to a surge in Bitcoin prices in recent weeks.
The cryptocurrency rallied toward $35,000 earlier this month, driven by market speculation around the potential approval of a spot ETF.
Meanwhile, crypto financial services platform Matrixport has predicted a big Bitcoin rally if spot ETFs hit the market.
Compared to precious metals ETFs, which have a market capitalization of around $120 billion, assuming that 10-20% of precious metals ETF investors consider diversifying into Bitcoin ETFs as a hedge against monetary declines and inflation, Matrixport says we could witness an inflow $12 to $24 billion into a Bitcoin ETF.
“If Tether's market cap increases by $24 billion, which acts as a proxy for potential ETF inflows, Bitcoin's price would rise to $42,000, representing a conservative estimate.”
In another confirmation of Bitcoin's bull market, the leading cryptocurrency's market dominance has reached 54%, its highest level in more than two and a half years.
The steady increase in Bitcoin dominance, starting from around 38% at the start of the year, comes amid a year-long rally, with the flagship cryptocurrency surging by 81% since the start of 2023.
source : AdobeStock/24K-Production
