• BTC rallied +68% in Q1 2024, partly due to US spot BTC ETF flows.
• Krueger estimated that BTC will hit $195K by end-2024 due to the flows.

Bitcoin [BTC] recorded an impressive Q1 2024 performance thanks to the flows from the new US spot BTC ETFs (exchange-traded funds). 

The digital gold rallied by over 68% in Q1, rising from $38.5K to $73.7K. Over the same period, the total flows from the spot ETFs hit $12 billion, and total assets crossed $59 billion. Collectively, it pushed BTC market capitalization to over $1 trillion. 

Bitcoin price driver: Halving vs ETF flows

Using historical data, Fred Krueger, a Bitcoin maximalist and serial investor, estimated that BTC could hit $195K by the end of 2024. 

Posting his analysis and assumptions on X (formerly Twitter), Krueger singled out the 2024 cycle, stating that:

“We’re at $70K and $1.4 trillion market cap.

We’re probably getting another $50 billion in inflows this year (ETFs plus exchanges)

At a multiplier of 50, that’s $2.5 trillion.

Brings us to a $3.9 trillion market cap or $195K BTC.

I think that’s the base case for this year. It could be higher.”