Bitcoin’s Potential Rally to $1 Million
According to Alessandro Ottaviani, an analyst with knowledge of Austrian economics, Bitcoin (BTC) has the potential to rally to over $1 million in price if the United States Securities and Exchange Commission (SEC) approves a Bitcoin Exchange Traded Fund (ETF). Ottaviani’s estimation is based on the events of October 16 when Bitcoin briefly spiked to over $30,000 before retracting due to false news about SEC approval.
Estimating Bitcoin’s Market Cap and Price
Ottaviani suggests that if the market cap of Bitcoin increased by $50 billion due to false news, then assuming a ratio of 100:1, approximately $500 million flowed into Bitcoin. Based on this ratio and estimates by Steven Schoenfield, a former managing director at BlackRock, who predicts that BTC could potentially receive between $150 billion and $200 billion within the next three years, Ottaviani speculates that the total market capitalization could exceed $15 trillion. This would lead to Bitcoin prices expanding to over $1 million.
Bitcoin Price Analysis
Looking at BTC charts, prices have remained stable and above the previous day’s close following the spike on October 16. The breakout on October 16 represented a bullish trend, with prices trending above September highs and similar levels as in October 2023.
Potential Resistance Levels for BTC
It is yet to be seen whether buyers will maintain the upside momentum and drive prices towards resistance levels at $30,000 and $32,000. Swing traders may consider retesting October 16 highs as the first target, with further continuation potentially leading to gains above $35,000.
Possible Triggers for BTC’s Upswing
Market analysts believe that approving a spot Bitcoin ETF could trigger increased demand and institutional exposure to Bitcoin in a regulated manner. This could potentially double or triple the amount of assets under management in current Bitcoin products.
Hot Take: Bitcoin’s Potential for a $1 Million Rally
Based on recent events and the potential approval of a Bitcoin ETF, there is speculation that Bitcoin could rally to over $1 million, with the total crypto market cap surpassing $15 trillion. While this estimation is subject to various factors, including market conditions and regulatory decisions, it highlights the optimistic outlook for Bitcoin’s future growth and its potential to attract significant investment.
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