Is it likely that the price of Bitcoin will reach $77k following the SEC’s approval of the ETF?
Anticipation is building as people eagerly await the U.S. Securities and Exchange Commission’s (SEC) decision regarding the approval of a Bitcoin exchange-traded fund (ETF). However, it appears that the SEC is still immersed in a mountain of paperwork. Speculation suggests that an announcement may be made by the end of this week, or possibly early next week, just before the January 10 deadline.
In a captivating video, British Hodl delves into the topic of the Bitcoin ETF, shedding light on why it holds the potential to revolutionize the market. He highlights a crucial point: the difference in investment habits between the average person and large institutions when it comes to Bitcoin. Typically, individuals like us invest sporadically, whereas big funds tend to invest regularly. The introduction of the Bitcoin ETF could disrupt this pattern, allowing retirement plans and other significant funds to make regular investments in Bitcoin.
The ETF’s ability to facilitate a constant influx of money has the potential to rapidly deplete the available Bitcoin in the market. While many focus on the total amount of money that will enter Bitcoin over the years, British Hodl suggests that we should shift our focus to the everyday money that will flow in as a result of the ETF.
According to research, maintaining Bitcoin’s price stability at $30,000 would require a daily buying volume of around $30 million. Applying this to the first year of Bitcoin ETF trading in the U.S., British Hodl predicts a total of $25 billion. This would translate to an additional $99 million pouring into the market every day.
Breaking it down further, British Hodl believes that this demand could cause the price of Bitcoin to soar to $515,000 on the first day of trading. However, he acknowledges that this is a simplistic calculation that does not take into account factors such as short-selling or the actions of regular investors.
Even with a more conservative estimate of $10 billion proposed by Bloomberg analyst James Seyffart, British Hodl still foresees the price rising to $77,000 on day one. He reminds us that Bitcoin is a global phenomenon, and its impact will be felt worldwide.
Tags: Bitcoin ETF