Bitcoin’s recent surge in value, driven by the introduction of Exchange-Traded Funds (ETFs), has resulted in a significant increase in transactions exceeding $100,000.
On October 24, there were approximately 23,400 daily BTC transactions worth over $100,000. This rise in transactions coincides with Bitcoin’s recent rally above $34,000, and it is believed to be due to growing interest from institutional investors.
Similar levels of large transactions were last observed in June when BlackRock filed its ETF application for Bitcoin.
One interesting development is the potential introduction of a spot Bitcoin ETF, which could attract even more institutional investors to the Bitcoin market. A spot Bitcoin ETF allows investors to gain exposure to Bitcoin without actually owning it.
However, it’s important to note that the current number of large Bitcoin transactions, although the highest this year, is still significantly lower than the all-time high in 2017. During that time, there were over 345,000 large transactions when Bitcoin was trading around $17,000.
As institutional interest in Bitcoin continues to grow, experts predict that the price of Bitcoin could reach new highs once a spot Bitcoin ETF is approved by the U.S. Securities and Exchange Commission (SEC).
Many market experts have shared their opinions on the potential impact of a spot Bitcoin ETF approval on the price of Bitcoin. While some are optimistic, there is a range of price predictions, with some being more conservative and others being more bullish.
For example, Matrixport, a cryptocurrency service provider, projects that Bitcoin’s price could reach as high as $125,000 by December 2024. They attribute this expected surge to Bitcoin entering its fifth bull market in June and the anticipation of increased institutional adoption.
Charles Yu, a research associate at Galaxy Digital, anticipates a 74% growth in Bitcoin’s price during the first year after the SEC approves a spot Bitcoin ETF. He suggests that monthly returns during this initial year of ETF trading could range from +3.7% to +6.2%.
It’s important to note that this article aims to provide accurate information, but readers are advised to verify facts independently and consult with professionals before making any decisions based on this content.