Bitcoin
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The bitcoin price, up more than double since the beginning of the year, topped $35,000 per bitcoin last week, fueling a wider ethereum, XRP and crypto market rally that’s added $300 billion to crypto’s market capitalization in just a month—with a “huge shift” potentially not even “priced in.”
Now, analysts have predicted the bitcoin price could surge next year, driving it to $150,000 per bitcoin by 2025 and giving bitcoin a market capitalization of $3 trillion as a flood of bitcoin spot exchange-traded funds (ETFs) hit the market.
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The bitcoin, ethereum, XRP and crypto market are hurtling toward what some think could be a price … [+]
“You may not like bitcoin as much as we do, but a dispassionate view of bitcoin as a commodity, suggests a turn of the cycle,” Bernstein analyst Gautam Chhugani wrote in a note seen by CNBC. “A good idea is only as good as its timing—SEC approved ETFs by world’s top asset managers (BlackRock
BLK
The world’s largest asset manager, BlackRock, fired the starting gun on a rush to get a bitcoin spot EFT to market in June when it filed its application with the U.S. Securities and Exchange Commission (SEC). The market was again charged in August when crypto asset manager Grayscale’s legal challenge to the SEC’s denial of its bid to convert its flagship Grayscale Bitcoin Trust (GBTC) into a fully-fledged bitcoin spot ETF was upheld by a court, ordering the SEC to review the application.
“We expect U.S. regulated ETFs to be the watershed moment for crypto and we expect a SEC approval by late 2023/first quarter of 2024,” Chhugani wrote.
Meanwhile, bitcoin’s next supply cut—known as a halving—scheduled for April 2024, is also expected to cause market chaos, potentially wiping out smaller bitcoin miners who use powerful computers to secure the network in exchange for freshly minted bitcoin.
“Post halving, we expect the bitcoin spot demand via ETFs to outstrip miner selling by 6-7 times at peak,” Chhugani wrote. “We expect bitcoin ETFs to be equivalent to 9-10% of spot bitcoin in circulation by 2028.”
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The bitcoin price has rebounded this year, soaring along with ethereum, XRP and other major coins, … [+]
Other market watchers have also cheered the expected arrival of a U.S. bitcoin spot ETF, predicting it will give credibility to the bitcoin and crypto asset class.
“The recent surge in the bitcoin price has resulted from increased rumors of an impending approval of a U.S. spot bitcoin ETF,” Greg Taylor, the chief investment officer at Toronto-based Purpose Investments—which launched a direct custody bitcoin ETF in Canada in 2021—wrote in emailed comments.
“Overall, this is an excellent indication that this asset class’s value proposition is apparent to many investors. Still, they are waiting for increased regulatory clarity and investment vehicles that are trustworthy and accessible before they start making sizeable portfolio allocations. If a U.S. spot bitcoin ETF is approved, it will be very positive for the sector and will likely positively impact the bitcoin price.”
