Bitcoin Price Forecast for 2024: What Happens After ETF Approval
Date: 2023-12-24 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Unlocking Institutional Capital with ETF Approval
The approval of a spot Bitcoin ETF could mark a pivotal shift in institutional engagement with cryptocurrencies, boosting market liquidity and dynamics. According to Mati Greenspan, the CEO of Quantum Economics, in the medium term, ETFs should provide an accessible path for purchasing Bitcoin that is convenient for regulators and aligns with various fund structures.
However, this launch will also have a direct impact on cryptocurrency exchanges. Nate Geraci of ETF Store and Eric Balchunas of Bloomberg note that the introduction of ETFs will increase competition and may force crypto platforms to reevaluate their business models and fee structures.
Grayscale CEO Michael Sonnenshein made another important point, suggesting that the approval of ETFs could unlock around $30 trillion already "reserved" for Bitcoin. This move could significantly expand the investor base, opening up new opportunities for those who couldn't previously invest in digital assets.
Positive Outlook for Bitcoin's Price
According to conservative estimates, Bitcoin's price after ETF approval may fluctuate between $42,000 and $100,000. However, some market participants hold much more bullish views, predicting that the leading cryptocurrency could surge to $160,000 or even $1 million due to the influx of institutional funds and a reduction in available supply.
For instance, Adam Back, CEO of Blockstream, anticipates a substantial increase in BTC price, potentially reaching $100,000, even before the ETF and the upcoming halving.
CryptoQuant analysts believe Bitcoin could surpass $160,000, citing several factors, including expected increased demand, the halving, and potential growth in broader stock markets driven by lower interest rates.
They stated, "We believe that 2024 will be a prosperous year for Bitcoin and the broader cryptocurrency market mainly due to the effects of: 1. market valuation cycle, 2. network activity, 3. halving, 4. macroeconomic outlook, 5. Bitcoin ETF approval, and 6. growing stablecoin liquidity."
Differing Opinions on Bitcoin's Future Price
On the other hand, Anthony Scaramucci, a prominent figure in the cryptocurrency space, expects Bitcoin to reach $330,000. He believes that if $100 billion flows into Bitcoin, it could lead to an 11-fold increase in value, transforming it from a $600 billion asset to a $6 trillion one.
Samson Mow, CEO of Jan3, envisions a rise to $1 million. Mow highlights the limited availability of BTC on exchanges, contrasting it with the inflow of institutional money. He emphasizes that such capital influx could lead to a significant and rapid increase in the cryptocurrency's price.
It is crucial to remember that these forecasts are speculative and depend on various factors, including regulatory decisions and market dynamics. Given the cryptocurrency's volatility, investors should approach these events with caution and conduct thorough research.
