This prediction comes amid the surge of activity on the market, amplified by the launch of the spot BTC ETF. Eric Balchunas of Bloomberg ETF noted an unprecedented 700,000 individual transactions on the ETF’s first day, signaling a strong demand for the recently launched product. Despite GBTC trading at a discount, indicative of potential selling and outflow, the collective trading volume across various funds, including IBIT, FBTC and ARKB, was a staggering $4.33 billion.
BTC/USD Chart by TradingViewThe options market also tells a tale of considerable activity, with 36,000 BTC options set to expire, having a notional value of $1.68 billion. Ethereum is not far behind, with 262,000 options due, pointing toward dynamic market sentiment.
Turning to Bitcoin’s price chart, the market has witnessed a steadfast ascent, with the cryptocurrency consistently finding support above the 50-day and 100-day EMAs — a bullish signal for traders. Current movements suggest a healthy consolidation, with potential for upside continuation.
So why does Cathie Wood believe Bitcoin could reach such astronomical levels? Wood’s forecast hinges on several factors. First, the growing institutional adoption positions Bitcoin not just as a store of value for encryption enthusiasts but as a tool for institutional-grade risk diversification. Bitcoin’s fixed supply cap at 21 million coins starkly contrasts with the inflating supply of fiat currencies, potentially driving its value as a deflationary asset.
Bitcoin’s network effect, where its value increases with the number of users and transactions on the blockchain, also bolsters Wood’s prediction. Coupled with technological advancements and increased accessibility, Bitcoin’s trajectory seems poised for continued growth.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
