Bitcoin Price Will Jump 500% If This Happens: Fundstrat Founder
For years, investors have been eagerly awaiting a Spot Bitcoin ETF to gain institutional and mainstream exposure to the digital asset. Several applications have already been rejected by the SEC citing concerns over the nascent market being too risky for investors. However, the applications have gained momentum in recent months, with many now expecting a green light from the SEC.
Bitcoin Price Could Jump 500%
While speaking in an interview with CNBC, Fundstrat co-founder Tom Fundstrat shared his optimistic prediction regarding Bitcoin. According to the company’s head of research, spot ETFs could increase BTC’s demand in relation to its supply, pushing it to $150,000 or maybe even further by the end of next year.
“If the spot Bitcoin gets approved, I think the demand will be greater than the daily supply of Bitcoin. So the clearing price, this is done by our crypto digital strategist, is over $150,000. It could even be like $180,000,” Lee said.
Considering the current price of BTC is at $28,485, this would represent an increase of over 500%. It could also mean a new all-time high price for the pioneer cryptocurrency.
BTC price falls to $28,470 | Source: BTCUSD on Tradingview.com
The Importance Of SEC Approval For BTC Spot ETFs
Spot Bitcoin ETFs are not new in the industry, as they’re available in Europe, and countries like Canada have them up and running already. The US, however, is a critical stronghold in the worldwide success of Spot Bitcoin ETFs because it is home to the largest investment companies like BlackRock and Valkyrie, all currently waiting for the approval of their recent ETF applications.
North America, especially the United States, currently accounts for 98% of all crypto ETF trading volume. However, this is mostly futures-based ETFs. But if the SEC gives the green light for Spot Bitcoin ETFs, it opens the floodgates for major institutions and investors to pour money into BTC. This would push North America’s stake to over 99.5%, according to Bloomberg senior ETF analyst Eric Balchunas.
Of course, there’s no guarantee the SEC will actually approve a Spot Bitcoin ETF. For instance, the regulator recently issued a delay letter regarding Ark Invest’s Bitcoin Spot ETF application.
Tom Lee believes that if the SEC doesn’t approve the applications, Bitcoin’s next halving – expected to take place in April 2024, could be the primary catalyst for the next spike in BTC’s price.
Other analysts also expect a spot ETF approval would trigger a new bull run and all-time highs for BTC. Robert Kiyosaki, a renowned finance author, believes BTC could reach as high as $1 million in the event of a stock and bond market crash.
Featured image from iStock, chart from Tradingview.com
