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Key Insights :
- Bitcoin price has strong technicals, pointing to more gains.
- BlackRock’s IBIT ETF is closing the gap with the biggest gold fund.
- It has over $80 billion in assets compared with GLD’s $100 billion.
Bitcoin price stabilized this week and hit an all-time high of nearly $120,000. BTC jumped to a high of $118,788, and technicals suggest it will hit $150,000. This surge will happen as BlackRock’s IBIT ETF closes the gap with the biggest gold fund.
BlackRock’s IBIT ETF is Closing the Gap With Gold GLD ETF
Bitcoin has become the fastest-growing asset as it moved from nothing in 2009 to a $2 Trillion asset today. The same trend is happening in the Bitcoin ETF industry as their inflows surge.
SoSoValue data shows that spot Bitcoin ETFs have had over $51 Billion in cumulative inflows. They now hold over $143 Billion in assets, equivalent to 6.37% of the total market capitalization.
The iShares Bitcoin ETF (IBIT) drove most of this growth. This has had over $53 Billion in cumulative inflows and $80 billion in total assets. Fidelity’s FBTC ETF has $23 Billion, and GrayScale’s GBTC ETF has $20 Billion. Also, Cathie Wood’s fund has over $5.7 Billion.
IBIT’s growth is notable for two main reasons. First, as the chart below shows, it has become the eighth-biggest BlackRock ETF by assets.
Second, the ETF is closing the gap with the SPDR Gold Shares ETF (GLD). It was established over 21 years ago and is the biggest gold-focused ETF. The GLD ETF has $102 Billion in assets under management.
IBIT holds 706,000 coins valued at about $80 Billion. Assuming the amount of Bitcoins in its portfolio remains intact, the Bitcoin price needs to hit $141,000. The coin has to do this to close the gap with the GLD ETF.
Fundamentals Point to More Bitcoin Price Surge
Bitcoin price has some of the best fundamentals in the financial market since it has strong demand and low supply. The demand side is strong, as evidenced by the ongoing Bitcoin ETF inflows and the rising number of treasury companies.
Data shows that the number of Bitcoin treasury companies has jumped to 60, a trend that may continue. Strategy leads the way with 597,325 coins valued at over $70 Billion. MARA Holdings follows it with 50,000 coins, XXI, Riot Platforms, and Metaplanet.
The chart below shows that daily Bitcoin addresses have continued rising to 837,000. This is the highest level since June 10. At the same time, the amount of Bitcoins in exchanges has continued to plummet this year.
It’s a sign that investors are not selling. There are now 1.2 million coins in exchanges, down from the last 12 months’ high of 1.96 million.
The other top fundamentals for Bitcoin are the upcoming Crypto Week in the United States, the upcoming interest rate cuts, and the potential for China to unbanned crypto.
Bitcoin Price Technical Analysis Points to a Surge to $150k
The daily chart reveals that the Bitcoin price has been in a strong surge lately. It formed the highly bullish cup-and-handle pattern, whose upper side was at $109,387. Also, the lower side was at $74,455. The difference between the two gives it a height of $34,935.
The price target in a cup-and-handle pattern is then established by adding the height to the breakout point. It, in this case, is at $109,387. Adding the two gives the Bitcoin price target at $144,320, which is only a few points below $150,000.
Bitcoin price has done well this year and is now at its highest record level. This surge is due to strong fundamentals and technicals, including ETF inflows. Its performance points to more gains, potentially to $150k in the near term.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
