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Fred Krueger, a well-known cryptocurrency analyst, recently tweeted about the “multiplier” effect on the Bitcoin market. According to him, before ETFs were launched in January 2024, the Bitcoin market cap was about $700 billion by mid-October. In recent times, the market cap has doubled, reaching an astounding sum of $1.4 trillion.
Rough ballpark estimate of the “multiplier”, per a question from @LawrenceLepard
Pre-ETF BTC market cap was 700 Billion (as of mid Oct 2023). Since then market cap has doubled to 1.4 Trillion.
How much in flow was needed to generate that 700MM? I would argue, about 160K BTC… pic.twitter.com/V9gr1dnSY8
— Fred Krueger (@dotkrueger) March 9, 2024
According to Krueger’s estimate, around 160,000 Bitcoins worth $50,000 each, totaling $8 billion, would have been needed to create a market capitalization of the initial $700 million. He also computed what he termed a ‘back-of-the-envelope multiplier’ of 87, implying that even a small investment may generate significant returns in the Bitcoin market.
Krueger’s projections underscore how much the dynamics of supply and demand – and institutional investor sentiment in particular – dictate where BTC goes next. If he’s right, it could mark a substantial milestone for Bitcoin, solidifying its position as a dominant asset class.
Bitcoin Momentum Approaching Halving
Veteran analyst and trader Michaël van de Poppe has stated that Bitcoin, the largest cryptocurrency, is gaining momentum towards a new all-time high. It could be said that the bull run of the BTC price is now at a critical moment, with less than 6 weeks to go until its fourth halving.
#Bitcoin establishes a momentum of where a new all-time high has been achieved.
Ultimately, the halving is approaching in six weeks time.
Question will be: $100K pre-halving or after halving or correction is on the horizon and altcoins to shine?
Let’s see. pic.twitter.com/h5zOy7JIC3
— Michaël van de Poppe (@CryptoMichNL) March 9, 2024
Van de Poppe listed three scenarios for BTC in the midterm: $100,000 before-halving, after-halving scenario, or altcoin summer–correction phase. When the orange coin is to be corrected, the analyst emphasizes $52,000 and $45,000 as potential support levels.
Several bearish scenarios that can be forecasted include a drop to mid-$30K zones or even lower than such levels. As of press time, BTC is trading at $68,528, with a 0.88% rise over the last 24 hours. The net trading volume added 31% and exceeded $56 billion in the equivalent.
In the last 24 hours, BTC soared to $70,000 on a few exchanges before retreating to $66,400. Consequently, both bulls and bears had their positions liquidated. CoinGlass statistics show that out of the total number of Bitcoin futures that have vanished, worth $105 million within 24 hours, bears are blamed for $56 million.
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