Roundup of BTC predictions: After approval of Bitcoin ETF, how high can BTC surge?
As the cryptocurrency industry prepares for the potential authorization of Bitcoin exchange-traded funds (ETFs), there is a lot of excitement and speculation within the financial community.
The looming decision by the U.S. Securities and Exchange Commission (SEC) has sparked debates, drawing a distinction between Bitcoin as a speculative investment and a legitimate means of payment. The outcome of this decision could be a defining moment for the future of Bitcoin.
While some analysts predict that Bitcoin’s price will experience a significant surge after the approval of ETFs, others believe it may not reach new all-time highs as previously anticipated.
Renowned analyst, Mister Crypto, who is well-known in the industry, foresees a 5% to 10% increase in Bitcoin’s value once the Spot Bitcoin ETF is approved. This upward movement could push Bitcoin beyond the $48,000 mark and gradually approach its previous all-time high. However, this short-term prediction is subject to various factors, such as the speed of ETF implementation and the actual market demand for the ETF. Potential sell-offs in the Grayscale Bitcoin Trust (GBTC) could also have a significant impact on this rally.
During a recent interview with CNBC, Pascal Gauthier, CEO of Ledger, expressed hopeful sentiments for 2024 and 2025, considering them as the runway for an upcoming bull run. This optimism is shared by industry insiders and commentators who predict a wide range of Bitcoin values for 2024, ranging from $60,000 to an ambitious $500,000. These forecasts are supported by two significant factors: the anticipated halving of Bitcoin and the potential approval of ETFs in the United States.
James Mullarney, a popular crypto analyst on YouTube with over 450,000 subscribers, took a more mathematical approach to predict Bitcoin’s price. Mullarney analyzed 13 different Bitcoin prediction models from industry experts and financial firms, concluding that BTC could reach $150,000 by the end of 2024.
Cumberland DRW, the crypto division of trading giant DRW, is already preparing for Bitcoin ETFs. They are onboarding issuers and sourcing Bitcoin to ensure readiness for the influx of orders. Rob Strebel, head of relationship management at Cumberland DRW, highlights the market’s efficiency in handling significant trading volumes, demonstrating confidence in the market’s liquidity. While Strebel did not provide a specific prediction to CNBC, he emphasized that ETF approval would result in a massive inflow of institutional funds into the leading cryptocurrency.
As the SEC’s deadline for a decision on Bitcoin ETFs approaches, there is palpable tension in the air. The approval of these ETFs could fuel speculation due to the new investment opportunities they present. According to a report by Yahoo Finance, up to 14 money managers are poised to launch their own spot Bitcoin ETFs. These developments could integrate Bitcoin into traditional investment portfolios, such as 401(k)s, IRAs, and pension plans, signaling mainstream acceptance of the world’s leading cryptocurrency.
Despite the optimism surrounding ETF approvals, many remain unconvinced that a BTC price rally is imminent. Matrixport, a crypto financial services platform that previously made extremely bullish predictions about Bitcoin, turned bearish earlier this week and speculated that the SEC would reject all current applications. This triggered a significant market liquidation, resulting in a $540 million loss in just four hours. However, Bitcoin and the overall crypto market quickly recovered.
Former BitMEX CEO Arthur Hayes also offers a contrasting perspective. In his essay “Signposts,” Hayes anticipates a significant price correction for Bitcoin, projecting a drop of 20% to 40%, especially if U.S.-listed spot Bitcoin ETFs begin trading. This prediction casts doubt on the optimistic outlook, suggesting volatility ahead for Bitcoin.
Overall, the potential approval of Bitcoin ETFs is a pivotal event that could reshape the landscape of cryptocurrency investment. While some analysts anticipate a substantial surge in price, others warn of possible corrections. As the industry eagerly awaits the SEC’s decision, it is evident that ETF approval will have a significant impact on Bitcoin’s adoption and price in the long term. However, the extent of the price movement remains a topic of speculation.
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