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Bitcoin Price Soars to $100,000 Speculation as ETFs Support Cryptocurrency Rally
Bitcoin is approaching its March all-time high of over $73,000. (REUTERS/Reuters)
Bitcoin (BTC-USD) rose more than 5% last week to a high of $71,240 (£55,739) in early trading on Thursday, after a surge in exchange-traded fund (ETF) inflows.
Other ether crypto tokens (ETH-USD) and solana (SOL-USD) increased by 3% and 4% respectively over the same period, according to Coingecko data.
To know more: What are bitcoin ETNs?
This was stated by the CEO of Galaxy Digital and cryptocurrency billionaire, Michael Novogratz BloombergTVthat bitcoin could surpass $100,000 by the end of this year if the price of the digital asset surpasses March’s all-time high of $73,000 and politicians begin to look more favorably on cryptocurrencies.
“If we take $73,000 in the next week, we’ll end the year at $100,000. Somewhere there or even higher,” Novogratz said Tuesday. Forecasts suggest a gain of around 40% from the current price on Wednesday.
Cryptocurrencies as an electoral issue
Novogratz added that he was waiting for two factors to trigger a new rally for bitcoin. “More regulatory clarity, which I thought was a low probability at that point, and/or the Fed starting to move. We are getting regulatory clarity, and while it’s not perfect, we have enough that people now realize that this is coming.” ,” he added.
He said political sentiment toward the crypto ecosystem in the United States is changing due to lobbying efforts and the growing role of cryptocurrencies in campaign financing.
“The scale got bigger. That’s why the Democrats woke up. There was about $150 million on the way to $250 million in these crypto Super PACs,” he said.
To know more: How cryptocurrencies’ faster payment systems are impacting banks
According to a blog post on Monday, US cryptocurrency exchange Coinbase (CURRENCY) recently donated $25 million to Fairshake’s PAC. The lobbying money is aimed at boosting the campaigns of cryptocurrency-friendly congressional candidates in upcoming US state primaries. “Fairshake supports candidates committed to ensuring that the United States becomes home to the innovators building the next generation of the Internet,” the Fairshake website states.
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Bitcoin ETFs
U.S. spot bitcoin ETFs saw total daily net inflows of more than $488 million on Wednesday. This marked the 17th consecutive day of net inflows for these funds, matching the longest streak of positive flows seen earlier in the year. Loyalty (FBTC) led inflows with $221 million, followed by BlackRock (IBIT) with $155 million, according to SoSoValue data.
To know more: What is a bitcoin spot ETF and why has it triggered a cryptocurrency rally?
Ark Invest and 21Shares’ (ARKB) took in $71 million, while bitcoin ETFs managed by VanEck and Invesco saw single-digit net inflows.
The United States Securities and Exchange Commission (SEC). approved the first US-listed ETFs to track bitcoin in January. Investors predict that these financial products could open the door for traditional capital to flood the cryptocurrency market.
To know more: What are bitcoin rune carvings?
Currently, financial interest in digital assets in the US appears favorable, with fund managers such as BlackRock (BLK) and Franklin Templeton (WELL), increasing their bitcoin allocations via ETFs.
VanEck predicts that ether could reach $22,000 by 2030
Asset manager VanEck has set a new price target for ether (ETH-USD), the native token of the Ethereum network, to $22,000 by 2030. This represents a significant increase from the level of around $3,845 at the time of this writing.
The global investment firm wrote in a recent report that ether could rise to the $20,000 mark due to its disruptive power and cash flow generated for token holders.
To know more: Bitcoin ETFs are primed for inflows into US pension plans, Standard Chartered analyst says
“Driven by a strong value proposition for entrepreneurs, the Ethereum network will likely continue its rapid growth in market share relative to traditional financial market participants and, increasingly, big tech. Should it do so while maintaining its dominant position among smart contract platforms, we see a credible path to $66 billion in free cash flow for token holders supporting $2.2 trillion in assets, or $22,000 per coin, by 2030,” VanEck’s relationship She said.
To know more: Real-time prices of cryptocurrencies
On May 23, the SEC approved spot exchange traded funds (ETFs). Unlike Bitcoin ETFs, which began trading the day after their approval in January this year, Ether ETFs may not be operational for trading on global exchanges for another few weeks or months.
Watch: What the debut of Bitcoin ETNs on the London Stock Exchange means for the European cryptocurrency market
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