Bitcoin Hits $38,000 for the First Time Since May 2022: What Will Be the Next Target?

• Bitcoin, currently trading at $37,790, shows a strong recovery with a 1.25% increase on Saturday.
• PlanB, the creator of the stock-to-flow (S2F) model, which is part of the Bitcoin price models family, states that Bitcoin is currently in the ‘pre-bull market’ phase.
• The latest report from on-chain data company Glassnode highlights significant unmet demand for the spot Bitcoin exchange-traded fund (ETF).

Bitcoin price surpasses $38,000 for the first time since May 2022: Should Bitcoin investors wait to buy BTC?

Bitcoin Surpasses $38K for the First Time Since May 2022

As the Bitcoin price surpasses $38,000 for the first time since May 2022, the crypto community is excitedly speculating whether the next milestone will be crossing $40,000. Currently trading at $37,790, Bitcoin shows a strong recovery with a 1.25% increase on Saturday. This resurgence aligns with PlanB’s highlighting of an average BTC price of $100,000 from 2024 onwards, indicating long-term optimism in the market.

Furthermore, the introduction of a Bitcoin ETF soon could support further growth by bringing about an unexpected $70 billion in new demand. Another factor contributing to this bullish trend is the confidence of the CEOs of leading crypto exchanges in Australia in an upcoming bull market, potentially laying the groundwork for sustainable upward momentum in Bitcoin.

Renowned crypto analyst PlanB, creator of the stock-to-flow (S2F) model in the Bitcoin price models family, notes that Bitcoin is currently in the ‘pre-bull market’ phase. According to the S2F model, he suggests that the current price levels below $40,000 are unlikely to last long. In his recent post on social media platform X (formerly Twitter), PlanB urges Bitcoin buyers to accumulate opportunities below $40,000.

Using realized price data, he emphasizes the likelihood of significant growth beyond the peaks of the last 18 months for Bitcoin. Realized price is calculated by dividing realized market value by current supply and is currently just below $21,000. PlanB’s optimistic view aligns with the growing trend of six-figure predictions for Bitcoin and one of the focal points for the end of 2025 could be $130,000.

The halving in April 2024 is expected to contribute to Bitcoin returning to around $46,000. The impact of this news on BTC prices could lead to increased buying activity as investors seek to take advantage of the anticipated upward trend.

Expectation: Bitcoin ETF Could Unlock $70 Billion in Growth

The latest report from on-chain data company Glassnode highlights significant unmet demand for the spot Bitcoin exchange-traded fund (ETF). According to Glassnode’s estimate, the approval of such an ETF could lead to an influx of up to $70 billion in new capital into the Bitcoin market. This forecast anticipates a 10% shift from major stock and bond ETFs and a 5% transition from gold ETFs.

The report emphasizes the diminishing Bitcoin supply available for trading to meet potential demand, noting that the ratio held by short-term investors has reached multi-year lows. This scarcity could increase market volatility caused by capital flows from ETFs.

The approval of a spot Bitcoin ETF in the U.S. could significantly enhance institutional access and demand for Bitcoin. Glassnode draws parallels by stating that we saw gold prices increase by over 400% following the approval of the first gold ETF in the U.S. in 2003.