QCP Capital, a leading institutional company, recently projected that Bitcoin could revisit its peak price levels, potentially reaching as high as $74,000 shortly.
This forecast follows the latest Consumer Price Index (CPI) data in the United States, which provided a significant boost to risk assets.
The company noted that the positive rise in the market is partly due to renewed demand from the buyer side, as evidenced by purchasing habits which resemble those of exchange-traded fund (ETF) market makers.
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Institutional Flows and Market Indicators Point to Bitcoin Uptrend
In a detailed analysis shared on its Telegram channel, QCP Broadcast, the company said: “We expect that bullish momentum here it could take us back to the highs of 74k.
Substantial institutional interest in Bitcoin supports this sentiment, as large asset managers like Millennium and Schonfeld have allocated approximately 3% and 2% of their assets under management (AUM) to BTC ETF detection, respectively.
The optimism surrounding Bitcoin is not just theoretical but supported by significant market activity. For example, inflows into spot Bitcoin ETFs in the United States reached a two week summit of $303 million as of May 15, a sign of a solid revival of institutional confidence.
Fidelity's FBTC fund led this inflow with $131 million, followed by Bitwise's BITB fund, which received $86 million, its highest level since early March. Grayscale's GBTC, which had been experiencing capital outflows for four months, reversed this trend with an inflow of $27 million.
Yesterday, May 15, the total net inflow into Bitcoin spot ETFs was $303 million. The Grayscale GBTC ETF saw a single-day net inflow of $27.0466 million, the Fidelity ETF FBTC saw an inflow of $131 million, and the Bitwise BITB ETF saw an inflow of $86.2578 million of dollars. https://t.co/npjWVH3bMi
-Wu Blockchain (@WuBlockchain) May 16, 2024
Further emphasizing this bullish sentimentMillennium Management holds a Bitcoin ETF portfolio of approximately $2 billion, making it the largest holder of specific Bitcoin ETFs like BlackRock's IBIT and Fidelity's FBTC.
Other hedge funds, including Paul Singer's Elliott Capital and Apollo Management Holdings, have also disclosed significant stakes in Bitcoin ETFs, demonstrating growing institutional interest in Bitcoin.
Market performance and future prospects
The performance of the Bitcoin market has been quite remarkable. It's up nearly 10% over the past week, including a 2.7% rise in the last 24 hours alone.
QCP Capital attributes this trend to several factors, including “significant adoption by states and institutions, easing inflation fears and the upcoming US elections”, all of which contribute to a favorable market outlook.
This positive sentiment is also partly due to CPI data released on May 15, which met expectations and eased concerns about inflation.
This is crucial because falling inflation rates influence the Federal Reserve's interest rate decisions, making riskier assets like Bitcoin more attractive to investors seeking higher returns.
James Coutts, chief crypto analyst at Realvision, also cited the Global Money Supply (M2) Index as a critical indicator of Bitcoin price movements.
According to Coutts, M2 monetary aggregates, which include cash and checking deposits and are easily convertible into currency, are essential to understanding liquidity flows within the global financial system.
He noted: “The money supply often moves in one direction, with significant declines like those seen in 2022 being rare and usually brief. »
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Coutts predicts that any significant break above Bitcoin's all-time highs could pave the way for reaching around $150,000 during this cycle. He remarked, “Look at level 101/102 on DXY. If this breaks, then we should see around $150,000 BTC this cycle,” highlighting the interplay between liquidity and market cycles.
Featured image from Unsplash, chart from TradingView