According to new research by crypto services provider Matrixport, if BlackRock‘s planned spot bitcoin exchange-traded fund (ETF) is approved, Bitcoin (BTC) might see a substantial increase, rising as high as $56,000.
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Based on Matrixport’s analysis, a conservative estimate of $42,000 is suggested, assuming that 10%–20% of investors in gold ETFs diversify their portfolios into a spot bitcoin ETF.
Considering the historical peak of the Grayscale Bitcoin Trust (GBTC) market value at $44 billion, even if it is currently at $17–18 billion, the potential inflow, projected at $12–24 billion, is considered a prudent projection.
The day after BlackRock’s application for a spot bitcoin ETF was submitted, on June 15, the price of bitcoin significantly increased, rising from $24,800 to over $30,000 in just seven days.
Even though the ETF’s price has dropped to about $28,500, market optimism is still supported by the expectations surrounding it.
The 15,000-person registered investor advisor (RIA) group in the United States, which manages $5 trillion, is prominently featured by Matrixport.
This group’s recommendations might result in an estimated $50 billion inflow with even a small 1% allocation suggestion for Bitcoin, adding to the potential upward trend.
The paper also predicts that Bitcoin’s price may increase to $42,000, which is a rather conservative prediction, if Tether’s market value rises by $24 billion, acting as a sign of possible ETF inflows.
According to Matrixport, Bitcoin has the potential to rise to $56,000 in the event of a more significant influx of $50 billion, which would imply a 1% allocation from RIAs.
“In the realm of possibility, Bitcoin could soar to new heights, ranging between $42,000 and $56,000, contingent upon BlackRock’s ETF gaining approval.”
The U.S. Securities and Exchange Commission (SEC) has postponed many ETF applications despite the promising outlook, citing the necessity for a longer review period.
The SEC stressed the significance of giving yourself enough time to think through the consequences, leaving the cryptocurrency world impatiently anticipating a conclusion.
In conclusion, BlackRock’s spot bitcoin ETF’s probable approval might signal a major turning point for bitcoin, with optimistic forecasts reaching as high as $56,000.
However, the cautious approach taken by the SEC adds a degree of uncertainty, putting the cryptocurrency community on edge as they wait for a regulatory decision.
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This post first appeared on Bitcoin Supply Movement: 3.8% Moved At $30.2K, Opportunity For “Buying, please read the originial post: here
