In the face of increased scrutiny and regulatory actions within the cryptocurrency sector, Bitcoin (BTC), the foremost digital currency in terms of trading volume, has demonstrated resilience, maintaining a consolidation range between $36,000 and $37,000. Notably, it achieved a new annual high of $38,390 last Friday.
A Report by CoinShares reveals a robust performance by Bitcoin despite concerns over a regulatory dispute involving Binance potentially triggering a BTC sell-off. Contrary to expectations, there has been a substantial influx of capital into digital asset investment products, with a noteworthy inflow of $346 million recorded last week. This marks the largest weekly inflow observed in a consecutive nine-week period.
The surge in capital inflows is attributed to the anticipation surrounding the potential introduction of a spot Bitcoin exchange-traded fund (ETF) in the United States, eagerly awaited by investors but delayed by the US Securities and Exchange Commission (SEC). This surge in capital is the most significant since the late 2021 bull market. Total Assets Under Management (AuM) have risen to $45.3 billion, the highest level in over a year and a half, fueled by a combination of rising prices and increased inflows.
Bitcoin’s inflows last week amounted to $312 million, bringing year-to-date inflows to just over $1.5 billion. Simultaneously, short-sellers are withdrawing, with outflows totaling $0.9 million for the third consecutive week. Since the peak in April 2023, AuM has decreased by 61%. The use of exchange-traded products (ETPs) to gain exposure to the asset class remains significant, with ETP volumes constituting 18% of total spot Bitcoin volumes last week.
Ethereum (ETH) also experienced a positive shift in sentiment, witnessing inflows of $34 million last week and a four-week run of $103 million, marking a reversal from earlier outflows. Additionally, other cryptocurrencies such as Solana (SOL), Polkadot (DOT), and Chainlink (LINK) saw inflows totaling $3.5 million, $0.8 million, and $0.6 million, respectively.
In a bold forecast supported by technical analysis, well-known crypto analyst “Crypto Con” predicts a substantial surge in Bitcoin’s value in the upcoming weeks. Citing the weekly Ichimoku cloud, Crypto Con asserts that Bitcoin’s upward trajectory is far from over, with an initial target set at $43,000.
The Ichimoku cloud, a widely used technical indicator for assessing potential future price trends and identifying key support and resistance levels, projects a bullish cross shortly. Drawing on historical data, Crypto Con estimates that the completion of previous Bitcoin rallies following a similar cross has taken anywhere from 7 to 11 weeks, with an average duration of 10 weeks. Consequently, the analyst anticipates the current move to reach its conclusion in early January.
Upon reaching its peak, Crypto Con suggests that the top of the red cloud, a crucial element of the Ichimoku cloud, becomes the primary target. While identifying $43,200 as the most conservative level for this target, Crypto Con asserts that the red cloud’s true top could reach as high as $48,000.
Metric | Bitcoin (BTC) | Ethereum (ETH) | Other Cryptocurrencies |
---|---|---|---|
Current Price Range | $36,000 – $37,000 | – | – |
New Yearly High (BTC) | $38,390 | – | – |
Weekly Inflow (Digital Asset Products) | $346 million | $34 million | $3.5 million (Solana) |
Total Assets Under Management (AuM) | $45.3 billion | – | – |
Year-to-Date Inflows (BTC) | $1.5 billion | – | – |
Short-Sellers Outflows (BTC) | $0.9 million (consecutive) | – | – |
AuM Decline Since April 2023 | 61% | – | – |
ETP Volumes as Percentage of Total Spot BTC | 18% | – | – |
Ethereum Inflows (Last Week) | – | $34 million | – |
Ethereum Four-Week Inflow | – | $103 million | – |
Other Inflows (Solana, Polkadot, Chainlink) | – | – | $3.5 million (Solana), $0.8 million (Polkadot), $0.6 million (Chainlink) |
Ichimoku Cloud Prediction (BTC) | $43,000 (initial target) | – | – |
Ichimoku Cloud True Top Estimate (BTC) | Up to $48,000 | – | – |