According to investment research firm Fundstrat, the Bitcoin price has the potential to surge to $180,000 ahead of the scheduled April 2024 halving. This anticipated rally is largely attributed to the potential launch of a Bitcoin exchange-traded fund (ETF) by BlackRock, a major asset management firm. The launch of a bitcoin ETF could significantly increase the daily demand for the cryptocurrency, exceeding the existing daily supply, which in turn would lead to a significant increase in the bitcoin price.
Business Insider reports that Fundstrat detailed the potential impact of a Bitcoin ETF launch, stating that it could push daily demand for Bitcoin to $125 million while daily supply remains at $25 million. Since daily demand exceeds daily supply, Bitcoin’s price would need to increase to reach an equilibrium point where demand and supply match. Fundstrat analysis suggests that the clearing price for this scenario could be in the $140,000-$180,000 range ahead of the April 2024 halving.
Sean Farrell, head of digital asset strategy at Fundstrat, expressed optimism about the likelihood of a spot Bitcoin ETF gaining approval in the near future. He sees a 75 percent probability that this approval will come about. If approved by BlackRock, a bitcoin ETF could attract new investors and generate increased demand for bitcoin, further pushing its price higher.
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BlackRock’s possible launch of a Bitcoin ETF could result in one of the largest ETF launches ever seen in the financial markets
This development has garnered a lot of attention as it could open the door to a wider range of investors accessing Bitcoin through traditional investment vehicles.
Fundstrat goes on to predict that if Bitcoin ETFs are successful and gain widespread adoption, they could eventually surpass the market size of precious metals ETFs, which currently have nearly $230 billion in assets. This suggests that the long-term potential for Bitcoin ETFs is significant, and they could grow into a category with a market size in excess of $300 billion.
It is important to note that forecasts in the cryptocurrency market are subject to inherent volatility and uncertainty. Actual Bitcoin price movement will depend on a variety of factors, including regulatory developments, institutional acceptance, macroeconomic trends, and technological advances. As always, investors and market participants should exercise caution and conduct thorough research before making any investment decisions in the cryptocurrency space.
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First published in COIN KURIER, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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