The price of bitcoin reached an all-time high of $69,000 on Tuesday and is still hovering around that level. However, on-chain data source CryptoQuant, which provides crypto market statistics, suggests that a temporary stop or correction may be coming because prices have climbed too quickly.
Just as prices were getting close to all-time highs, data from the company reveals that daily inflows of Bitcoin into accumulation addresses had reached record levels, totaling 38,000 Bitcoin. The price of bitcoin reached a new all-time high mostly due to record-high inflows of capital from new investors. This is clear from the way that Bitcoin moves into accumulation addresses and how CryptoQuant’s expanding ETF holdings show this.
In fact, accumulating addresses’ overall Bitcoin holdings also hit all-time highs. Currently, these addresses have 1.5 million Bitcoin in total ownership. The research statement from CryptoQuant stated that “the accelerating growth in their Bitcoin holdings is a sign of strong demand,” as these addresses represent investors who have only ever purchased Bitcoin and have never sold.
ETF Demand for Bitcoin Is Still High
According to CryptoQuant, 360,000 Bitcoin, or 1.8% of the total Bitcoin supply, are held in Bitcoin ETFs (not including the Grayscale GBTC).
There is a great demand for these products, as seen by the approval of eleven Bitcoin spot ETFs in the United States earlier this year. As of December 31, BlackRock held $10 trillion in assets, making it the largest asset manager in the world. It should come as no surprise that the company’s introduction of a new Spot Bitcoin product has started another bull market.
Bitcoin Might Reach “$140,000”
The focus is on Bitget’s Managing Director, Gracy Chen, who believes that the price of bitcoin might rise to between $120,000 and $140,000. Based on recent net inflows into ETFs, this audacious forecast indicates an impending rise, according to Arslan Butt of Cryptonews. As of right now, Bitcoin is trading close to $67,000 and is exhibiting resilience following a significant decline. This suggests that we may be witnessing an unprecedented bull market cycle.