The Probable for a Bitcoin (BTC) Price Surge
Bitcoin (BTC) has been stuck in a bearish trend for months, unable to surpass key resistance levels since losing the critical $30,000 support in July. This lackluster price action has left cryptocurrency investors and analysts doubtful about Bitcoin’s short-term prospects.
Nonetheless, regardless of prevailing bearish sentiment, cryptocurrency investor Anthony Pompliano remains optimistic and predicts a rally similar to the one in 2020 is brewing beneath the surface.
Bitcoin’s Price Surge: A Look Back at 2020
To build positive trend sentiment, Pompliano draws parallels between the present market state and the exciting conditions of 2020. He outlines whole lot of events that triggered a surge in Bitcoin’s price, such as unprecedented money printing and the Bitcoin (BTC) halving in May 2020.
In 2020, Pompliano describes a “demand shock, supply shock” scenario that led to substantial gains. Now, he is confident that history is about to repeat itself with the upcoming April 2024 halving and the capacity approval of spot ETFs on the horizon.
Pompliano firmly asserts his positive trend vision, stating that the ETF app will be the demand shock, and the halving will be the supply shock, potentially driving Bitcoin’s price up by hundreds of percent.
The Hurdle of Spot ETF Approval
For more than a decade, the cryptocurrency industry has been lobbying the SEC to approve a spot Bitcoin (BTC) ETF, but the regulator has consistently denied applications. This persistent rejection has led numerous investors to believe that a Bitcoin (BTC) ETF is unlikely to become a reality.
Nonetheless, the landscape changed when major players like BlackRock, Invesco, WisdomTree, Fidelity, VanEck, Bitwise, Ark Invest, and Valkyrie filed spot Bitcoin ETF applications. With these institutional giants adding pressure, some believe the SEC will sooner or later give in.
The timing of the first approval remains uncertain. Although while some specialists, like Lory Kehoe, do not expect it to happen in the year, analysts Eric Balchunas and James Seyffart believe there is a 75% chance of approval in 2023, a sentiment shared by Pompliano.
Why Bitcoin’s Future Remains Uncertain
Although while the halving and probable spot ETF approvals could serve as positive trend catalysts, Bitcoin’s future remains unpredictable due to macroeconomic conditions and an uncertain regulatory environment.
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Regardless of the prevailing doubt and uncertainty, Anthony Pompliano’s positive trend perspective on Bitcoin’s future, driven by the capacity for a price surge and spot ETF approvals, provides hope for cryptocurrency investors. Although while challenges and hurdles remain, the likelihood of history repeating itself and Bitcoin’s value skyrocketing cannot be disregarded.
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