$BTC ETF Bitcoin attracts a record $41 billion: Will Bitcoin reach $200,000?

Bitcoin price hits $103,744, Bitcoin ETF attracts a record $41 billion in capital flows in 2024, but risks from quantum computing and market volatility pose challenges to the $200,000 target.

Record capital inflow into Bitcoin ETF

Bitcoin (BTC) continues to assert its leading position in the cryptocurrency market as Bitcoin ETFs record net capital inflows of over $41 billion in the first 5 months of 2024. As of May 8, 2024, this figure surpassed the historical high of $40 billion, primarily thanks to BlackRock's iShares Bitcoin ETF (IBIT). With $64 billion in net assets, IBIT is currently the largest spot Bitcoin ETF in the market, reflecting strong demand from institutional investors looking to access Bitcoin through a regulated channel.

This growth occurs against the backdrop of Bitcoin being viewed as a store of value and a hedge against inflation, especially as the global economy faces numerous uncertainties. The price of Bitcoin currently stands at $103,744, up over 60% in the past year, further fueling the investment wave.

Impact on the cryptocurrency market

The large capital inflow into Bitcoin ETFs is reshaping the market. ETF providers hold billions of dollars worth of Bitcoin in cold storage, reducing circulating supply. This creates upward price pressure as demand outstrips supply. With Bitcoin's price hovering around $104,000, the market is expecting the cryptocurrency to break through resistance levels and reach new highs.

According to CoinShares, Bitcoin attracted $867 million in recent capital inflows, while Ethereum only reached $1.5 million. The U.S. leads in capital inflows into Bitcoin ETFs with $840 million, followed by Germany with $44 million, and Australia with $10 million.