Bitcoin Reaches $120K as Spot ETFs Attract $627 Million
Bitcoin surged to $120,000 this week, nearing its all-time high of $124,457. The price increased by nearly 10% over the past week, driven by strong demand from spot Bitcoin ETFs, which attracted $627 million in four days.
Ethereum ETFs also experienced growth, with $307 million in inflows during the same period.
Wall Street Forecasts
- Citigroup predicts Bitcoin could reach $181,000 in 12 months, with a year-end target of $133,000.
- Citi expects ETF inflows to hit $7.5 billion by year-end, potentially boosting prices.
- If the global economy weakens, Bitcoin might drop to $83,000.
- Citi raised its Ethereum year-end forecast to $4,500, citing staking yields as a draw for institutional investors.
Retail Demand and "Debasement Trade"
- JPMorgan analysts note retail investors are favoring Bitcoin and gold due to inflation concerns and fiat currency distrust.
- Bitcoin is up nearly 95% in the past year, gold over 40%, and silver about 60%.
Options Market Signals
- Glassnode data indicates traders are focusing on Bitcoin's $100,000–$120,000 range, with some speculative bets at $130,000 and $300,000.
- The balance between calls and puts shows traders hedging both upside and downside risks, highlighting $120,000 as a critical market level.
The fourth quarter tends to be bullish for Bitcoin, with the broader crypto market rallying as well.