btc Spot ETF For Bit Coin Accepted !
The American Securities and Exchange Commission (SEC) has finally approved the first application to list Ark 21Shares Bitcoin ETF. The fund is expected to start trading on Thursday, January 11, 2024.
The news of the SEC giving the green light for the first spot Bitcoin ETF has contributed to a slight increase in the price of the cryptocurrency. Bitcoin briefly reached $47,750 at one point in the past night. However, by Thursday morning, its price had dropped to just over $26,000.
Despite this, Bitcoin is still over $30,000 more expensive than it was in November 2022, when it was priced at below $15,500.
Bitcoin is predicted to increase by 980% to $500,000
It seems that the introduction of Bitcoin ETFs will support the long-term influx of institutional capital into the virtual asset market, seen as a bullish signal for Bitcoin overall. Thomas Lee, a managing partner of Fundstrat Global Advisors, also believes that Bitcoin could rise to $150,000 within the next 12 months and potentially reach $500,000 within the next five years.
Considering that one Bitcoin currently costs $46,000, this would represent a 224% increase in a year and a 980% increase over a five-year period.
Bitcoin to Surge by 980% to $500,000! These Two Factors will Drive the Bull Market
Bitcoin enthusiasts have been making similar predictions for some time now. Their analyses are based on a basic model of supply and demand. If Bitcoin becomes mainstream and represents just 10% of the global market capitalization, with only 21 million BTC in existence, its value could indeed reach millions.
Bitcoin Spot ETF to Attract Institutional Capital
Lee's optimistic forecast is based on several key events in the Bitcoin market. The primary factor is the increasing involvement of institutional investors, which has been a bullish signal for Bitcoin over the past year. When BlackRock, the world's largest investment fund, submitted the first application for a Bitcoin ETF to the SEC, it was seen as a major endorsement.
Lee believes that institutional adoption will legitimize Bitcoin and attract large investments, thereby increasing demand and ultimately its price.
Lee also stated that the approval of a Bitcoin ETF could unlock a new wave of demand. The introduction of ETF funds will provide a streamlined and regulated path for a wider range of investors, especially those from traditional financial markets, seeking exposure to BTC.
4th Bitcoin Halving is Coming
Another factor driving bullish sentiment in 2024 is the upcoming Bitcoin halving event, expected in about 12 weeks. This event will reduce the mining reward for new blocks to 3,125 BTC from the current 6,25 BTC.
The halving will effectively slow down the rate at which new BTC is generated.
A halving in new supply, along with constant or increasing demand, should lead to price increases. This trend has been seen after each halving event in Bitcoin's history, with significant value spikes each time. Following halvings, Bitcoin saw increases of:
9594% in 2013-2014
3012% in 2016-2017
652% in 2020-2021
While each subsequent halving saw smaller percentage increases, the fact remains that these increases occurred without the involvement of large financial institutions.
This belief is shared by Bitcoin supporters who predict that in the coming year, Bitcoin will reach new all-time highs after the halving.
Lee's predictions also echo the sentiments expressed by other financial experts and cryptocurrency enthusiasts, such as Anthony Scaramucci, Arthur Hayes, and Samson Mow, who have also forecasted similar value increases for Bitcoin due to limited supply and increased institutional investments.