Coinspeaker
Bitcoin ETF Approval Can Push BTC Price to Over $100K in 2024
In the aftermath of the US Securities and Exchange Commission’s groundbreaking approval of the first-ever US spot Bitcoin exchange-traded fund (ETF), cryptocurrency enthusiasts are optimistic about BTC price potential to surge beyond $100,000 this year. Investors in the crypto space believe that the approval of a Bitcoin ETF is a pivotal step that will diversify the range of investors gaining exposure to the leading cryptocurrency.
Despite the approval of 11 Bitcoin ETFs by the SEC, Bitcoin’s price has experienced limited movement since the announcement. The regulatory green light allowed for rule changes facilitating the creation of these ETFs, emphasizing that this approval does not indicate a willingness to approve listing standards for crypto asset securities.
Following the SEC’s decision, Bitcoin’s price reached $46,118 per coin on Friday, showing a marginal 0.4% decline. Although it briefly surpassed $49,000, levels not seen since December 2021, the immediate market reaction has been subdued.
However, cryptocurrency proponents anticipate significant upward movements in Bitcoin over time, driven by the impact of ETFs and other developments in the crypto industry. Investors and analysts foresee the ETF approval as a catalyst that will gradually manifest in the broader market, potentially propelling Bitcoin to new heights in 2024.
Bitcoin Halving Will Be a Catalyst to $100,000
Bitcoin is on the verge of its fourth halving this year, a key event dictated by its monetary policy to enhance its scarcity. The halving process involves halving Bitcoin’s supply growth rate approximately every four years or after the addition of 210,000 blocks to the blockchain.
Bitcoin’s supply growth rate, once exceeding 10%, has now dropped to around 1.75%. In April this year, it will further drop to a mere 0.85%. This gradual halving will persist until the entire supply of 21 million coins is mined, projected to occur around 2140, while approximately 19.6 million coins are currently in circulation.
Despite the complexity of the code enforcing the halving mechanism, the concept is straightforward. A decrease in the rate of supply growth places additional pressure on prices, even with constant demand. Historically, Bitcoin has witnessed an average increase of 128% during the year of a halving event. If this trend repeats, Bitcoin’s price could potentially surpass $100,000, measured from its current value of around $46,000.
Some Bitcoin proponents like PlanB are expecting the BTC price to rally all the way to over $500,000 in the next bull run after BTC halving.
Anthony Scaramucci, the founder of SkyBridge Capital, has disclosed an augmented investment in Bitcoin, foreseeing the cryptocurrency’s ascent to $100,000 within the next year. Drawing a parallel between the approval of bitcoin ETFs and the 2004 green light for the first spot gold ETF, Scaramucci acknowledged that, while the gold ETF’s approval took time to yield significant price increases, it eventually propelled gold into a substantial surge in value.
“We see it as digital gold. If you look at the market cap of gold, $13 trillion, there’s no reason why bitcoin couldn’t be 50% or 60% of that market capitalization. So that implies a 10x price over then next decade,” said he.
Bitcoin ETF Approval Can Push BTC Price to Over $100K in 2024
