The excitement within the cryptocurrency community is brewing as they eagerly anticipate the potential approval of a Bitcoin exchange-traded fund (ETF), which could have a significant impact on BTC prices. One notable analyst, Tom Lee, the managing partner of Fundstrat Global Advisors, is optimistic about Bitcoin’s future and has made a bold prediction. He believes that Bitcoin could reach 6 figures before the scheduled halving in 2024.
Tom Lee’s Bold Predictions: BTC on a Track of $180K?
In a recent research note, Lee explained that the approval of a spot Bitcoin ETF could trigger a substantial rally, driving BTC’s price to an impressive range of $140,000 to $180,000 by April next year. This forecast indicates a remarkable increase of 380% to 516% from the current levels.
All eyes are on the projected range, will it change the game? Having said that he makes it clear that if you introduce ETF, the daily demand can go up to $125 million, while the daily supply remains at $25 million. As a result, the implied equilibrium price would have to rise to match the increased daily demand, leading to the projected price range of $140,000 to $180,000.
While the key reason behind Lee’s prediction is based on a compelling thesis projected by Fundstrat’s head of crypto strategy, Sean Farrell. According to Farrell, the approval of a spot Bitcoin ETF could potentially increase the daily demand for Bitcoin 4X-5X. Currently, the Bitcoin market appears to be in balance, with $25 million in daily block rewards and an equal amount in daily demand.
Will A Bitcoin ETF Be Approved?
Additionally, he mentioned that despite numerous rejections in the past, he is hopeful about the odds of a spot in Bitcoin ETF finally getting approved in the US. He points to the “BlackRock effect” as a significant factor that could increase the likelihood of approval. BlackRock, the world’s largest investment firm, filed an application for a spot in Bitcoin ETF, which has subsequently been followed by other prominent players in traditional finance like Invesco, Valkyrie, and Fidelity Investments.
“Bitcoin ETF could finally get approved.” Sean Farrell sees the ‘BlackRock effect’ making this far more likely today.”
Currently trading at $29,191, Bitcoin’s future remains uncertain, but many supporters believe that the approval of a Bitcoin ETF would lead to widespread institutional adoption of the cryptocurrency. This, in turn, could boost liquidity and increase overall market participation. While the final decision on the ETF approval remains unclear, indications from major equity funds suggest that they anticipate a positive outcome from US regulators.
