Bitcoin is on the brink of a significant milestone, with derivatives suggesting a potential surge above $73,000, possibly reaching an all-time high by the weekend. This optimistic outlook is bolstered by recent developments in the cryptocurrency market, particularly surrounding spot ether exchange-traded funds (ETFs).
Optimistic Signals for Bitcoin
The anticipation of spot ether ETFs has created a positive ripple effect for Bitcoin. Analysts believe that the approval of these ETFs would further legitimize the cryptocurrency sector, benefiting Bitcoin as well. Geoff Kendrick, Head of FX Research and Digital Assets Research at Standard Chartered Bank, expressed confidence in Bitcoin reaching a new all-time high by the weekend, surpassing the $73,798 mark set on March 14.
Year-End Price Targets
Kendrick’s optimism extends beyond the immediate future. He has set ambitious price targets for Bitcoin, predicting it will reach $150,000 by the end of 2024 and $200,000 by the end of 2025. This confidence is fueled by increased inflows into spot Bitcoin ETFs, which have reached a new all-time high of $12.9 billion.
Correlation with Tech Stocks
Kyle Rodda, Senior Market Analyst at Capital.com, highlighted Bitcoin’s price movement’s close correlation with the performance of the top 100 tech companies on the Nasdaq. As these tech stocks approach record highs, Bitcoin is also expected to benefit from the growing market confidence in potential Federal Reserve rate cuts this year. Rodda noted that Bitcoin remains a gauge of monetary policy expectations and risk appetite.
Recent Market Rally
The entire cryptocurrency market has experienced a significant rally, increasing by over 8% in the past 24 hours. This surge follows the SEC’s request for updates to 19b-4 filings for spot ether ETFs, indicating potential progress toward approval. Bloomberg ETF analysts have increased the chances of SEC approval for these products from 25% to 75%.
Current Bitcoin Price
As of 12:18 p.m. ET, Bitcoin’s price had increased by over 3.68% in the past 24 hours, reaching $69,940. The GM 30 Index, representing the top 30 cryptocurrencies, also saw an 8.78% increase, reaching 148.81.
Conclusion
With the potential approval of spot ether ETFs and the positive correlation with tech stocks, Bitcoin is poised for a significant surge. Analysts remain optimistic about its future, with ambitious price targets set for the coming years. The cryptocurrency market’s recent rally further underscores the growing confidence in Bitcoin’s potential.
