Bitcoin
Lark Davis’ Bitcoin and Ethereum Price Prediction: Altcoins Rally with Record ETF Inflows
The altcoin market is on fire! Fueled by a rise in value and a decline in Bitcoin’s dominance, altcoins are experiencing an intense rally. The total market capitalization of altcoins has soared 15% in just two weeks, reaching a staggering $1.156 trillion. But what is causing this insane increase? Let’s find out.
Bitcoin ETFs Drive Market Growth
In a historic milestone for the cryptocurrency market, Bitcoin ETFs in the United States have seen an inflow of more than $2 billion in the last two weeks. A record $1 billion was received last week, with $305 million on May 21 alone. Bitcoin ETFs, which track the price of Bitcoin and trade on conventional exchanges like the NYSE, offer investors exposure to Bitcoin without the need to hold the cryptocurrency directly.
According to data from Far side, US spot Bitcoin ETFs recorded net inflows of approximately $252 million on May 24, marking the 10th consecutive trading day of net inflows. Specifically, BlackRock’s IBIT saw an inflow of $182 million, Fidelity’s FBTC received $44 million, Bitwise’s BITB attracted $6.4 million, and the ARK 21Shares Bitcoin ETF saw an inflow of $4 million .
Analyst Insights: Lark Davis’ Bold Predictions
Crypto influencer Lark Davis in his post foreseen substantial price increases for Bitcoin and Ethereum, predicting that Bitcoin will reach $150,000 and Ethereum will reach $15,000. Davis noted this trend as a growing impact of Bitcoin ETFs, which are already attracting hundreds of millions of dollars in daily inflows. He expects a similar trend for Ethereum ETFs, which will begin trading soon.
According to a report by Kaiko analysts, Grayscale could be a game changer for ETH ETFs similar to BTC ETFs. Grayscale’s upcoming Ether (ETH) spot ETF could see daily outflows of around $110 million if it follows the same trend that the Grayscale Bitcoin Trust (GBTC) did when it was converted into an ETF. After the conversion on January 11, GBTC experienced an outflow of 23% of its assets, totaling $6.5 billion in the first month.
Davis expects regular investors, institutional buyers, wealth managers, pension funds and countries to invest billions in these ETFs daily as the bull market peaks. The inflow of capital is expected to increase prices. He says that ETF-driven investments would increase the prices of Bitcoin and Ethereum as market sentiment is not optimistic enough considering their growth potential.
Interestingly, Q1 reports revealed that more than 20% of exposure to US spot Bitcoin ETFs was held by large investors and institutions with assets exceeding $100 million. This includes major hedge funds, banks and even the Wisconsin state pension fund, highlighting the growing institutional interest in Bitcoin ETFs and a sign that ETH ETFs will suffer a similar fate.
Although ETH ETFs have not yet been launched, there is speculation that they could reverse BTC ETF flows and make altcoin history. To agree?