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Will Bitcoin Hit $200,000 in Current Bull Market? ETFs in Focus

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Bitcoin extended its winning momentum, surpassing the $63,000 mark on Wednesday and nearing a potential new record high.The arrival of spot bitcoin ETFs has helped the cryptocurrency reach levels not seen since late 2021.

Bitcoin has been leading the charge with a huge 42% price jump this month, marking its most substantial monthly gain since December 2020. However, the excitement was quelled a bit as Bitcoin unexpectedly experienced a drop, stabilizing at $61,650 during Asia's morning trading session.

Cryptocurrency Market Momentum Extends Beyond Bitcoin

Not only bitcoin, other cryptocurrencies also followed the suit. The upward momentum in bitcoin also propelled Ether to $3,416, reflecting an extensive 50% surge in February.

Launch of Spot Bitcoin ETFs: A Gamechanger

The launch of spot Bitcoin ETFs are a game changer for the cryptocurrency market. The launch has made it easier for investors to gain exposure to Bitcoin without directly owning the asset, thereby underscoring the potential growth of cryptocurrency in mainstream investment platforms.

What’s Target Price of Bitcoin in Current Bull Market?

Renowned trader Peter Brandt took to Twitter to share his insights, suggesting that Bitcoin's recent surge beyond the upper boundary of a 15-month channel could signal a target of $200,000 for the current bull market cycle, a considerable uptick from his previous estimate of $120,000. Brandt, known for his astute analysis of Bitcoin's price trends, occasionally expresses bullish sentiments.

Is Bitcoin a Digital Gold & Hedge Against Inflation?

The CEO of Bitwise Asset Management anticipates Bitcoin's price to hit $250,000 sooner than expected. He expects Bitcoin may grab some market share of gold and that will happen faster than previously anticipated.

JP Morgan Chase & Co. said in 2021 that the upsurge of cryptocurrencies in mainstream may replace gold. Bitcoin is likely to outdo gold as millennials will be playing an important role in driving the investment market in the long run given their preference for “digital gold” over traditional bullion, JPM indicated then. Investors are probably viewing it as a hedge against inflation.

Likely Fed Rate Cut in Late 2024 to Bitcoin?

If the Fed cut rates in late 2024, investors may view bitcoin as an alternative to the depreciating dollar. Moreover, any Fed rate cut would boost risk-on sentiments, which in turn, would help bitcoin prices.

April’s Having Event: Another Tailwind

Another key factor contributing to Bitcoin's positive outlook is the upcoming halving event scheduled for Apr 2024.  During a halving event, the rewards offered to miners are halved, effectively reducing the supply of new Bitcoin entering the market. Historically, these events have often caused significant price surges, making them a point of anticipation for Bitcoin enthusiasts.

ETFs in Focus

Against this backdrop, below we highlight a few bitcoin ETFs that could be tapped now.

Grayscale Bitcoin Trust (GBTC - Free Report) ) – Up 41.7% Past Month

Grayscale Bitcoin Trust is the world’s largest Bitcoin ETF that enables investors to gain exposure to Bitcoin in the form of security while avoiding the challenges of buying, storing and safekeeping Bitcoin directly. It owns and passively holds actual Bitcoins through the Custodian, Coinbase Custody.The expense ratio of 1.50%.

Valkyrie Bitcoin Strategy ETF (BTF - Free Report) ) – Up 41.9% Past Month

Valkyrie Bitcoin Strategy ETF is an actively managed ETF available through Nasdaq. It invests primarily in bitcoin and ether futures contracts. The fund charges 120 bps in fees.

Bitwise Bitcoin Strategy Optimum Roll ETF (BITC - Free Report) ) – Up 41.9% Past Month

Bitwise Bitcoin Strategy Optimum Roll ETF provides directional exposure to bitcoin via regulated futures contracts and seeks to maximize potential roll returns through a selective analysis of bitcoin futures beyond front or near-month contracts. The fund charges 85 bps in annual fees.

ProShares Bitcoin Strategy ETF (BITO - Free Report) ) – Up 38.7% Past Month

ProShares Bitcoin Strategy ETF invests primarily in Bitcoin futures contracts and does not invest directly in Bitcoin. The fund charges 95 bps in fees.

ARK 21Shares Active Bitcoin Futures Strategy ETF (ARKA - Free Report) ) – Up 40.61% Past Month

ARK 21Shares Active Bitcoin Futures Strategy ETF is an actively managed ETF that targets 100% exposure to bitcoin through investment in bitcoin futures contracts. ARKA aims to outperform BTC by actively rolling its futures contracts. The fund charges 70 bps in fees per year.

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