The iShares Bitcoin Trust is on track for an impressive rally when markets open this week as the price of Bitcoin surged to a record high. The IBIT ETF ended the week at $44, several points below its all-time high.
IBIT ETF inflows are growing rapidly
The iShares Bitcoin ETF is doing significantly better than expected as institutional investors continue to flock to the fund.
Data from SoSoValue shows the fund has seen significant inflows over the past few months and now has more than $34 billion in assets. Its cumulative inflows totaled $27 billion, making it the largest spot Bitcoin ETF ever.
As a result, the IBIT ETF has outperformed the popular iShares Gold ETF (IAU) and may cross the popular SPDR Gold ETF (GLD).
The same trend is observed among other spot Bitcoin ETFs. For example, the Fidelity Bitcoin ETF now has more than $14 billion in assets, while Ark Invest, Bitwise and VanEck have more than $1 billion in assets. Overall, cumulative inflows into Bitcoin ETFs jumped to nearly $26 billion.
This trend will continue this week as the Bitcoin price made a strong bullish breakout and rose to an all-time high. It topped $80,000 for the first time on Sunday and rose to nearly $82,000 on Monday morning. Therefore, the IBIT ETF will likely open at over $46 as it tracks the price of Bitcoin.
Bitcoin price is rising rapidly
To give a clear forecast for IBIT ETF shares, it is best to look at the price of Bitcoin, which is in a parabolic move.
The price of Bitcoin has soared for the past seven days in a row and is now at an all-time high. The surge comes after Donald Trump won the US election last week while Republicans were on track to win the House of Representatives.
Trump promised to adopt friendly policies in the field of cryptocurrencies, and this step will help the development of the industry. One such measure would be to appoint a favored official to head the Securities and Exchange Commission (SEC).
The crypto industry as a whole does not like Gary Gensler, the current head of the Securities and Exchange Commission, who has controlled it through prosecutions. He recently sent a Well’s notice to Immutable, the creator of a second-tier network for games and NFTs.
The IBIT ETF has also done well thanks to the Federal Reserve, which has maintained a relatively dovish tone. In most periods, risk assets like Bitcoin thrive when the Fed cuts interest rates.
Most importantly, there are signs that the fear of missing out (FOMO) is setting in now that the Crypto Fear and Greed Index has moved into the greed area of 74. This trend will push more retail and institutional investors back into Bitcoin.
Read more: Analysts Expect Bitcoin to Rise to $90,000 in Latest Breakout
This is called a complex continuation of the inverted H&S pattern – I know it’s a mouthful Many chartists deny its existence – not me Also not Schabacker, Edward and Magee – check for yourself Note the similarities with gold in 2009-2010. Complex shoulders, short RS $BTC$XAUUSD
Bitcoin Price Forecast
BTC chart from TradingView
The daily chart shows that the price of Bitcoin has been doing well over the past few weeks. It rose to an all-time high of over $81,400 and rose above the top of a descending expanding wedge pattern.
Bitcoin rose above the 50-day and 200-day exponential moving average (EMA). In addition, the relative strength index (RSI) and the stochastic oscillator have moved to overbought levels.
The Average Directional Index (ADX) also rose to 28, indicating that the trend is gaining momentum. Thus, the BTC price prediction is extremely bullish: the next point to watch will be at $100,000.
If this trend continues, it means that the iShares Bitcoin Trust (IBIT) and other spot Bitcoin ETFs will continue to rise. If this happens, the next point to watch would be at $60.
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