Cryptocurrency Bulls Predict Bitcoin Surge to $100,000 Following SEC ETF Approval
According to several crypto investors, the approval of the first-ever U.S. spot bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) could lead to bitcoin surging to over $100,000 this year. The approval of a bitcoin ETF is expected to attract a wider range of investors to the cryptocurrency market, which could drive up its price. However, despite the news, bitcoin’s price has not seen significant movement and was trading at around $46,118 per coin.
What’s a Bitcoin ETF?
A bitcoin ETF allows retail investors to indirectly hold bitcoin through shares traded on a stock exchange. It is anticipated that more institutions like BlackRock and Fidelity will offer these products, leading to increased acceptance and mainstream adoption of the cryptocurrency. Anthony Scaramucci, founder of SkyBridge Capital, stated that he has been increasing his exposure to bitcoin and other cryptocurrencies over the past year.
‘Digital Gold’
Scaramucci compared the approval of a bitcoin ETF to the introduction of the first spot gold ETF in 2004. While it took years for gold prices to skyrocket after the ETF’s approval, he believes that bitcoin could reach 50% or 60% of gold’s market capitalization, resulting in a tenfold increase in its price over the next decade. However, it is important to note that bitcoin has not yet proven itself as a reliable “digital gold” asset, as its price has shown correlation with stocks rather than gold in recent years.
2023 Was Bitcoin’s Turnaround Year
Last year was challenging for the crypto industry due to the collapse of FTX and other negative events that eroded trust in the market. However, 2023 saw a significant rebound, with bitcoin’s price doubling and other digital tokens also experiencing gains. The industry is now optimistic about another bull run, fueled by the approval of a bitcoin ETF and the upcoming halving event, which cuts the rewards for bitcoin miners in half and historically preceded price increases.
$250,000 by July?
Tim Draper, founder of Draper Associates, predicts that bitcoin could reach $250,000 by July due to increased adoption and the halving event. He believes that women will play a crucial role in driving bitcoin adoption. However, it is worth noting that Draper’s previous predictions about bitcoin’s price trajectory have not been accurate. Other investors such as Tom Lee and Meltem Demirors also have bullish outlooks for bitcoin, with Lee predicting a price of $150,000 in the next year and Demirors expecting it to reach six figures by the end of this year.
Hot Take: Bitcoin’s Future Looks Promising
With the recent approval of a U.S. spot bitcoin ETF and positive sentiment from investors, it seems that bitcoin’s future is promising. While its price has not seen significant movement yet, many believe that over time, the combination of ETFs and other developments in the crypto world will drive major upward movements in bitcoin’s value. With predictions ranging from $100,000 to $250,000 or even higher, it remains to be seen how high bitcoin can climb in the coming months and years.
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