Altcoins
Lark Davis’ Bitcoin and Ethereum Price Prediction: Altcoins Rally with Record ETF Inflows
The altcoin market is on fire! Fueled by a surge in value and a decline in Bitcoin dominance, altcoins are experiencing a red-hot rally. The total market capitalization of altcoins has skyrocketed by 15% in just two weeks, reaching a staggering $1.156 trillion. But what determines this crazy wave? Let’s find out.
Bitcoin ETFs drive market growth
Representing a historic milestone for the cryptocurrency market, Bitcoin ETFs in the United States have seen an inflow of more than $2 billion in the past two weeks. Last week, a record $1 billion was received, including $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, spot Bitcoin ETFs in the United States experienced net inflows of approximately $252 million on May 24, marking the tenth 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 attracted recorded an inflow of 4 million dollars.
Analyst Insights: Lark Davis’ Bold Predictions
Crypto influencer Lark Davis in his post X ha expected Substantial price increases for Bitcoin and Ethereum, predicting Bitcoin to hit $150,000 and Ethereum to hit $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 relationship according to analysts at Kaiko, Grayscale can represent a turning point 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 as the Grayscale Bitcoin Trust (GBTC) when it converted to an ETF. After the January 11 conversion, GBTC saw an outflow of 23% of its assets, amounting to $6.5 billion in the first month.
Davis expects regular investors, institutional buyers, asset managers, pension funds and countries to pour billions into these ETFs daily as the bull market peaks. The inflow of capital is expected to push up prices. According to him, ETF-driven investments would push up the prices of Bitcoin and Ethereum as market sentiment is not bullish enough considering their growth potential.
Interestingly, first quarter reports revealed that over 20% of US spot Bitcoin ETF exposure was held by large investors and institutions with assets exceeding $100 million. This includes large hedge funds, banks and even the state of Wisconsin pension fund, underscoring the growing institutional interest in Bitcoin ETFs and a sign that ETH ETFs will see a similar fate.
While ETH ETFs have yet to launch, there is speculation that they could reverse BTC ETF inflows and make altcoin history. Agree?