- BTC rallied +68% in Q1 2024, partly attributable to US spot BTC ETF flows.
- Krueger estimated that BTC will hit $195K by end-2024 as a result of flows.
Bitcoin [BTC] recorded a formidable Q1 2024 efficiency because of the flows from the brand new US spot BTC ETFs (exchange-traded funds).
The digital gold rallied by over 68% in Q1, rising from $38.5K to $73.7K. Over the identical interval, the entire flows from the spot ETFs hit $12 billion, and complete property crossed $59 billion. Collectively, it pushed BTC market capitalization to over $1 trillion.
Bitcoin worth driver: Halving vs ETF flows
Utilizing historic knowledge, Fred Krueger, a Bitcoin maximalist and serial investor, estimated that BTC may hit $195K by the top of 2024.
Posting his evaluation and assumptions on X (previously Twitter), Krueger singled out the 2024 cycle, stating that;
“We’re at $70K and $1.4 trillion market cap.
We’re most likely getting one other $50 billion in inflows this 12 months (ETFs plus exchanges)
At a multiplier of fifty, that’s $2.5 trillion.
Brings us to a $3.9 trillion market cap or $195K BTC.
I believe that’s the bottom case for this 12 months. It might be larger.”
Krueger stressed that the 2024 bull market cycle was primarily pushed by ETF flows from conventional finance (TradFi).
“However the actual story is Bitcoin ETFs. TradFi meets Bitcoin.”
Nonetheless, he famous that BTC may prolong to $500K in two years earlier than encountering a nasty crash.
Krueger didn’t explicitly state what would trigger the crash if BTC hit $500K. Nonetheless, he believed the halving occasion would scale back the price slump however not essentially drive a large rally.
“I believe the halving paves the best way for the rally, because it lowers the quantity that shall be dumped on a 4x rally.”
Put in a different way, the BTC maximalist sees ETF flows as a vital worth driver in comparison with the availability shock brought on by the halving occasion.
At press time, Bitcoin slipped under $70K and retested the $68K space earlier than reclaiming $69K.
Rekt Capital, a crypto market analyst, claimed the transfer confirms a breakout after BTC recorded a weekly candlestick shut of $71.2K, above the earlier cycle’s all-time excessive of $69K.
