Approval of BlackRock Bitcoin ETF Could Raise BTC Price to $56,000
Date: 2023-10-19 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Bitcoin Awaits a Game-Changer: Possible Rally to $56,000
Analysts are predicting significant shifts in the cryptocurrency market with the potential approval of BlackRock's application for a spot Bitcoin ETF. In the event of a favorable decision by the U.S. Securities and Exchange Commission (SEC), the price of the leading cryptocurrency could soar to an astonishing $56,000. This prediction comes from analysts at Matrixport, suggesting that Bitcoin may soon test the range of $42,000 to $56,000.
How Investors Can Inject $50 Billion into the Crypto Industry
One key factor that could channel substantial funds into the cryptocurrency industry is the involvement of investors from the Registered Investment Advisor (RIA) community. It is assumed that over 15,000 members of this community will allocate 1% of their assets to invest in Bitcoin. Such an inflow could contribute up to $50 billion to the cryptocurrency industry. Currently, the total assets under RIA management amount to an astounding $5 trillion.
Anticipating Tether's Growth and Its Potential Impact on Bitcoin
Analysts are also considering the impact of Tether's market value growth on Bitcoin dynamics. If this figure increases by $24 billion, the Bitcoin price may reach $42,000. Tether serves as an indirect indicator of potential capital inflow into ETFs.
Experts Predict a $1 Trillion Increase in the Crypto Market Cap
In the event of a spot Bitcoin ETF approval, CryptoQuant analysts anticipate a significant increase in BTC's market volume by $155 billion, contributing a whole trillion to the overall cryptocurrency market cap. Calculations indicate that the companies that have submitted applications to the SEC manage over $15.6 trillion. If they invest just 1% of their assets in Bitcoin-associated funds, the cryptocurrency market could expect an injection of $155 billion. In such a scenario, the Bitcoin price could easily reach the range of $50,000 to $73,000.
A Brief Surge and Correction in Bitcoin's Price: Recent Events Recap
At the beginning of the week, rumors surfaced about the SEC's approval of the iShares company's spot Bitcoin ETF. In response, the price of Bitcoin sharply jumped to over $30,000, only to later settle back at the $28,000 level when BlackRock denied the information. Currently, the leading cryptocurrency is trading at $28,486, according to CoinGecko data, with a 0.5% price increase in the past 24 hours.
