Bitcoin (BTC) price has maintained an upward trend in Q1 2024 pushing the wider market to new highs. In recent weeks, several bullish investors have projected new highs for the market on the back of spot Bitcoin ETF approval by the United States Securities and Exchange Commission (SEC).
A new market report from on-chain analysis firm CryptoQuant shows an expected surge in the price of Bitcoin over the next few months. While the current cycle’s peak has not been attained, the market has faced slight corrections in recent weeks due to macroeconomic factors.
The peak of a bull market is determined by the influx of new investors
“We can expect that the market has not yet reached its peak, & since we can now expect additional inflows from #Bitcoin ETFs, we could see a sharp further rise in $BTC.” – By @DanCoinInvestor
Link 👇… pic.twitter.com/wjQFrO87xn
— CryptoQuant.com (@cryptoquant_com) April 11, 2024
New Investors Trickling In
The analyst noted that inflows recorded in the market will determine its highs and eventual end. Since inflows into the market from spot ETFs have not reached their peak, more highs are expected in the coming months.
Crypto Dan, a digital asset analyst, explained that a decrease in the proportion of BTC in six shows Ned investors moving toward the market. Q4 2023 saw heightened investment in the market from traditional investors as they increased their exposure to the asset.
“A decrease in the proportion of Bitcoins held for more than 6 months means that the number of Bitcoins traded for less than 6 months has increased, so it can be assumed that new investors have been flowing in.”
Bitcoin Previous Peaks Trigger Projection
Historically, after an influx of new investment in the market, it takes the price about seven to nine months to reach its peak. In the 2017 bull run, highs were recorded after nine months of inflows.
Similarly in 2021 highs were tapped after seven months taking the price of the asset to an all-time high above $64,000 before the bear season kicked in. This year, the market has experienced three months of constant flows since the approval of ETFs pointing to increased figures.
Even conservatively, we can expect that the market has not yet reached its peak, and since we can now expect additional inflows from US spot Bitcoin ETFs, we could see a sharp further rise in Bitcoin in 2024.”
Also Read: XRP Ledger (XRPL) AMM Brings Vital Fix Amendment To The Mainnet
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
