In a recent analysis, a crypto market expert discovered key elements that could trigger a massive rise in the price of Bitcoin.
Crypto Expert Reveals Catalyst for Bitcoin Price Rise
Head of Research at CoinShares, James Butterfill released an in-depth analysis of a revelation that could catalyze a significant increase The price of Bitcoin. Butterfill’s research digs deeper into the current crypto market dynamics surrounding the potential approval of Spotting Bitcoin ETFs and the influxes that could follow.
Using analysis by GalaxyButterfill deduced that if 10% of the $14.4 trillion in addressable assets in the United States were to be invested in Spot Bitcoin AND F, each with an allocation of 1%, we would then see inflows of more than $14.4 billion. If the predictions prove true, Butterfill said it would mean the largest inflow ever seen in financial markets.
“One could assume that perhaps 10% invest in a spot bitcoin ETF with an average allocation of 1%, which would equate to $14.4 billion in inflows in the first year. If accurate, these would be the largest inflows on record, with the largest so far occurring in 2021, which saw $7.24 billion in inflows, representing 11.5% of assets Under Management (AuM),” Butterfill said.
The crypto expert also pointed out a distinct correlation between assets under management (AuM) inflows and price changes, suggesting that price surges occur around the same time as inflows increase.
“There appears to be a relationship between inflows as a percentage of assets under management and price movement. The inflows seem to coincide, the week prices rise, so do the flows rather than one leading the other,” Butterfill said.
Expert predicts massive BTC surge if trigger events occur
In his research, James Butterfill also predicted that the price of Bitcoin could reach $141,000 if driven by inflows of $14.4 billion.
He expressed reservations about his deductions, saying it would be difficult to accurately estimate the amount of inflows that would occur if Spot Bitcoin ETFs have been introduced.
“If we take the aforementioned $14.4 billion in inflows, the model suggests that this could drive the price up to $141,000 per Bitcoin. The problem with estimating inflows is that it is very difficult to determine exactly the amount of inflows when launching spot ETFs,” Butterfill said.
Butterfill also acknowledged the uncertainties surrounding Spot Bitcoin ETF application following its possible approval. He said there were many variables, both regulatory and corporate, that could significantly influence the perception of The role of Bitcoin in society.
“Ultimately, it is very difficult to determine how big the potential wall of demand will be once a spot ETF launches. We know this effectively diversifies a portfolio and improves Sharpe ratios, but regulatory approval and corporate acceptance are slow-burning issues due to the perceived complexity of Bitcoin,” Butterfill concluded.
BTC recovers to $37,200 | Source: BTCUSD on Tradingview.com
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