The possibility of approval of a Bitcoin ETF (Exchange Traded Fund) is expected in the virtual currency market, sparking debate among experts and enthusiasts. This development could bring huge amounts of money into Bitcoin and transform the industry.
Some proponents, such as Samson Mo and Raul Pal, predict that Bitcoin’s price will soar to an unprecedented $1 million.
Bitcoin ETFs cause huge capital inflows
recently interview, JAN3 CEO Samson Mo predicted that the price of Bitcoin will rise significantly and could reach $1 million. He argued that the ongoing crypto bull market is fundamentally different from previous bull markets, breaking the traditional four-year cycle pattern.
Moe said the unprecedented price spike is caused by a combination of supply, demand and price shocks.
“Everything seems to be [Bitcoin] ETFs are also expected to be approved on the same day… [What this does is] The supply of Bitcoin on exchanges is very limited and can be purchased with large amounts of funds. So it’s basically a supply shock multiplied by a demand shock. And that brings price shocks.This is the reason [Bitcoin] It can get very high at once. ” Mo affirmed.
Moe emphasized that the approval of spot ETFs will be a pivotal moment in unleashing a torrent of US institutional capital into Bitcoin. This influx of billions of dollars in a very short period of time can cause rapid price increases.
“I do not think so [the current] The rally is a very special rally. This is a gathering of ants.When it’s a real rally [Bitcoin goes] Up to $1 million, then that’s the spot [Bitcoin] “ETFs have been approved and will result in tens of billions, probably hundreds of billions of dollars flowing into Bitcoin in a very short period of time,” Mo said.
Read more: How to prepare a Bitcoin ETF: A step-by-step approach
Mo’s prediction is rooted in the idea that Bitcoin’s supply is limited. If it is hit by large capital inflows, it would lead to dramatic price increases similar to the 20x increase observed from 2016 to 2017.
BTC Price Project “Abnormal Number Set”
Raul Pal, co-founder and CEO of Real Vision, also said: offered A macroeconomic perspective on Bitcoin’s growth potential. He identified two major long-term trends that have a significant impact on asset prices: business cycles and financial conditions. Pal suggested that Bitcoin could reach $500,000 to $1 million by the end of 2025.
“These cycles can be crazy and this time feels more like the 2017 cycle than the previous one. And central banks didn’t print much in that cycle…Central bank balances sheet [are now] Rising. We saw 20% growth and what happened to liquidity was that cryptocurrencies completely exploded. That’s exactly what I feel like right now,” Pal emphasized.
Pal analyzed Bitcoin’s performance against the S&P 500 since 2013 and noted that it has outperformed the S&P 500 by 88% annually, reinforcing Bitcoin’s status as a formidable asset in financial markets. He highlighted the high risk-adjusted returns of cryptocurrencies compared to other investment options and attributed this to a high correlation with global liquidity trends.
“[Bitcoin] This is the horse I support the most. It is the fastest horse in the race. Highest risk-adjusted returns, high correlation with this global liquidity index for all our codes. So we know how asset prices move and using our proprietary framework gives us a competitive advantage,” Pal added.
Pal also discussed the impact of the Bitcoin halving and its correlation to global debt refinancing cycles and election cycles. He argued that these macro factors, combined with expectations for ETFs, are likely to propel Bitcoin to new heights.
Read more: 2024 BTC price prediction after Bitcoin ETF approval
The approval of Bitcoin ETFs is seen as a game changer. This provides a regulated and easy path for institutional investors to gain exposure to Bitcoin, thereby increasing demand and reducing barriers to entry. This could result in new capital flowing into the market, leading to significant price increases.
“[Bitcoin] It gives us some kind of crazy numbers… crazy numbers like $218,000 by May. That’s after the halving and after the ETF.It also gives a goal of $500,000 by 2026, which [logarithmic] It is possible because there is a trend,” Pal concluded.
The road to $1 million awaits a major catalyst
Both Mo and Pal emphasized the important role of institutional investors in the rise in Bitcoin prices. The entry of major companies such as BlackRock shows the growing acceptance of Bitcoin as a legitimate investment vehicle. With the approval of Bitcoin ETFs, these institutional inflows are expected to increase dramatically.
The arguments presented by Mo and Pal suggest a period of transformation for Bitcoin. In fact, potential ETF approval could act as a catalyst for unprecedented price increases.
Read more: Complete list of Bitcoin ETFs awaiting approval in January 2024 and deadlines
Past performance is no guarantee of future results, but the combination of limited supply, institutional investor interest, and favorable macroeconomic conditions convinces Bitcoin could rise to $1 million. It shows strong evidence.
Disclaimer
In accordance with Trust Project guidelines, BeInCrypto is committed to fair and transparent reporting. This news article is intended to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to independently verify their facts and consult a professional. Please note that our Terms of Use, Privacy Policy, and Disclaimer have been updated.
