Cryptocurrency enthusiasts are speculating about the potential effects of SEC-approved spot Bitcoin ETFs on Bitcoin's value.
Fundstrat, a renowned investment research entity, has forecasted a notable surge in Bitcoin's price should several spot Bitcoin ETFs gain SEC's approval.
In a recent interview on CNBC's Squawk Box, Tom Lee, Fundstrat's leading research executive, highlighted the transformative implications of greenlit Bitcoin spot ETF applications.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
How to Pick the Right NFTs? (Animated DOs & DON'Ts)
Lee claimed that approval would tilt the balance of Bitcoin's supply-demand chain, pushing the cryptocurrency's price up significantly.
If the spot Bitcoin (ETF) gets approved, I think the demand will be greater than the daily supply of Bitcoin, so the clearing price <...> is over $150,000, it could even be like $180,000.
It is worth noting that the significance of US approval can't be underestimated. The lion's share of global trading volume for crypto-linked ETFs, a staggering 97.7%, comes from the US. The dominance, according to Bloomberg's ETF analyst Eric Balchunas, could reach close to 99.5% post the approval of spot Bitcoin ETFs.
However, Lee claims that a refusal to greenlight the ETFs shouldn't impact Bitcoin's price. The forthcoming Bitcoin halving event in April 2024 could be a price propellant. But Lee adds a warning: while the event will trigger a supply drop leading to price escalation, reaching a six-figure price might still be a tall order.
Other industry stalwarts like Blockstream's Adam Back believe Bitcoin could reach $100,000 before the next halving event.
On the other hand, some experts advise caution. Jesse Myer from Bitcoin investment firm Onramp opined that market adaptation to the altered halving reality might take a year or more post-halving, tempering expectations of a swift rise to $100,000.
Several financial juggernauts, such as Fidelity, WisdomTree, Valkyrie, and even BlackRock, have lodged their Bitcoin spot ETF applications with the SEC. However, the decision-making process is rather extensive, with the SEC granted up to 240 days post-review commencement to deliver a verdict.
While the jury is still out on the exact trajectory Bitcoin will follow, it's undeniable that potential ETF approvals and the impending halving event will play pivotal roles in shaping its journey ahead.
