- Fundstrat predicts a potential 521% surge in Bitcoin’s price to $180,000 before the April 2024 halving, attributing it to increased daily demand through a potential Bitcoin ETF launch.
- The firm believes there is a 75% probability of the SEC approving a spot Bitcoin ETF, which could attract new investors and significantly boost Bitcoin’s demand.
In a market research report by Insider released on Monday, Fundstrat, a renowned United States-based investment research firm, has made a remarkable Bitcoin price prediction for the upcoming months. The analysis centers around the potential impact of spot Bitcoin ETFs, particularly from investment giants like BlackRock, and expresses strong confidence in the approval of such ETFs by the U.S. Securities and Exchange Commission (SEC).
Spot Bitcoin ETFs and Their Potential Impact
Fundstrat’s experts suggest that once spot Bitcoin ETFs come into operation, there could be a multiplier effect on the Bitcoin network, significantly amplifying its market capitalization. The firm’s head of digital asset strategy, Sean Farrell, predicts a 75% probability of the SEC greenlighting a spot Bitcoin ETF in the near future. Notably, prominent players like BlackRock, Fidelity, Citadel, and Valkyrie have already filed spot ETF applications as of June 2023.
Halving and ETF – A Catalyst for Bitcoin’s Rally
Alongside the ETF potential, CoinGape further added that Fundstrat highlights the significance of the Bitcoin halving event scheduled around April 2024. This event will cut the block rewards miners receive for processing Bitcoin transactions by half, leading to increased scarcity of the cryptocurrency. Fundstrat’s research analysts have projected an astonishing 521% price surge for Bitcoin, propelling it from its current range of around $30,000 to a staggering $180,000 within just nine months before the April 2024 halving.
The Impact of ETF on Bitcoin’s Demand
Fundstrat outlines a compelling scenario: Should a Bitcoin ETF be approved, it would introduce an additional $100 million in daily demand for Bitcoin. When combined with the halving event that would reduce daily mining rewards to $12 million, this surge in demand would necessitate a substantial price rise to achieve equilibrium between buyers and sellers.
Joining the Ranks of Bitcoin Bulls
Fundstrat’s optimistic forecast aligns with other influential voices in the cryptocurrency space. Standard Chartered bank, Bitcoin advocate Michael Saylor, and Ark Invest’s Cathie Wood also see substantial potential for Bitcoin’s growth in the coming years.
Conclusion: Looking Ahead
As market players eagerly await the SEC’s decision on the spot Bitcoin ETF applications, the crypto community keeps a watchful eye on the impending halving event and its potential impact on Bitcoin’s price dynamics. The convergence of these factors has the potential to fuel significant developments in the cryptocurrency market in the near future.
