Bitcoin Price Targets $50k by EOY as $180B Flows In BTC Market Cap

 Key takeaways

• Bitcoin (BTC) above $36,000 for the first time since May 2022 as the SEC can now officially approve Bitcoin ETFs
• Net exchange outflows for BTC have hit their highest daily figure since 2022, signalling strong conviction from investors in continued bullish price action
• The BTC price prediction algorithm has forecasted a further +51% gain before the end of the year, a move that would take BTC above $50,000 for the first time in 2 years

BTC surges above recent range as fresh news breaks regarding Bitcoin ETF applications

Bitcoin (BTC) has climbed +3.91% in the past 24 hours to reach $36,714 at the time of writing. BTC, the largest cryptocurrency by market cap, has now broken above its recent range and is valued at more than $36,000 for the first time since May 2022.

BTC hit $35,000 during a +30% move in the second part of October, and held support well between $34,000 and $35,500. This follows bullish rumours regarding Bitcoin ETF applications that were submitted by leading financial institutions in the United States back in June.

There is now widespread positive sentiment among crypto investors as BTC continues to maintain its bullish momentum. As of today, the Securities and Exchange Commission (SEC) is officially able to approve Bitcoin ETFs and the BTC price prediction algorithm has signalled more bullish price action before the end of the year.

BTC market cap gains $180 billion in the past month, more bullish news surfaces for Bitcoin ETF filings

The +32% move from BTC in the past month has raised its market cap by $180 billion in total. At its current market cap of $717 billion, BTC dominance has reached 52% — a statistic that has historically signalled the beginning of a new cryptocurrency bull market.

Reinforcing bullish price action, is that the SEC can now officially approve the Bitcoin ETFs that were filed in June. There is a short window of 8 days in which the SEC can approve all 12 Bitcoin ETFs, starting today and ending on 17th November 2023.

Bloomberg analysts stated that, even if the SEC fails to approve Bitcoin ETFs within the current window, that there’s a 90% likelihood of all Bitcoin ETFs being approved by 10th January 2024.

JUST IN: ?? Bloomberg analysts say a “brief window” opens tomorrow for SEC to potentially approve spot #Bitcoin ETFs, and it will be open for at least 8 days. pic.twitter.com/CfDXylvd8v

— Bitcoin Magazine (@BitcoinMagazine) November 8, 2023

Strong bullish sentiment: With the Bitcoin halving coming soon, BTC sees highest daily exchange outflows since December 2022

The next Bitcoin halving event is set to take place in April 2024. The halving is an event written into the Bitcoin protocol that reduces the total BTC rewards for miners every 210,000 blocks, which equates to roughly every four years.

The Bitcoin halving permanently restricts new BTC supply entering the market each time it occurs, providing a deflationary effect where each BTC in circulation becomes more scarce. The halving event has historically ushered in a period of intense upside for BTC, which has formed all-time highs within a year of each prior halving event.

Today’s breakout from BTC, coupled with rising optimism for imminent ETF approvals, has led to a record high for net exchange outflows in 2023. Netflow from all exchanges on 9th November is -23,463 BTC — the highest net outflow in a single day since 13th December 2022.

Net outflows typically signal that investors are buying BTC and storing it in self-custody. This can provide a real insight into investor sentiment at this moment in time, with higher prices still expected despite the BTC’s bullish run in recent weeks.

Bitcoin exchange netflows, showing highest net outflow in a single day since Dec 2022. Source: CryptoQuant

Algorithm predicts continued surge by EOY that would take BTC closer to all-time high

The BTC price prediction algorithm has forecasted that upward momentum will be sustained heading into the holiday period. With the SEC now able to approve Bitcoin ETFs, the next Bitcoin halving event fast approaching, and more daily exchange outflows than at any other point in 2023, Bitcoin continues to gain fresh bullish catalysts.

The algorithm expects a further +51% gain for BTC that would take it from its current price of $36,714 up to $55,514 by New Year’s Day. BTC was last valued above $50,000 in November 2021, at which time the cryptocurrency had just reached its all-time high of $68,844 before quickly reversing.

BTC is now more than 2x up from its December 2022 price level, which is the last time that exchange outflows were as high as today’s. A further +51% move from here would bring BTC to a new 2023 high with 4 months still remaining until the next halving event takes place.

Bottom line: Financial institutions expected to offer Bitcoin ETFs in the United States by Q1 2024 at the latest, algorithm forecasts new 2023 high by EOY

Bitcoin has been in a consistent uptrend since December 2022. During this time, BTC has had enough bullish momentum to make 3 separate impulsive waves of more than +30%, coming in January, March, and October respectively. This excludes the +26% move that was made in June when news broke of the Bitcoin ETF filings.

Despite being more than 2x up from 2022, investors are still bullish on BTC price action. The 23,463 BTC that flowed out of exchanges on 9th November signals that there is strong conviction in higher prices to come. As things stand, the SEC will need to make a decision on ETF filings within the next 2 months.

The price prediction algorithm expects BTC to hit $50,000 before 2024, and the forecasted +51% move would bring BTC just 23% away from all-time high with 4 months to go before the next halving event takes place.