The price of Bitcoin (BTC) will rise to an eye-watering $150,000 by the end of 2024, provided the current slew of spot-Bitcoin exchange-traded funds (ETFs) in the United States is approved, according to investment research boutique Fundstrat.
In an August 16 interview on CNBC’s Squawk Box, Fundstrat managing partner and head of research Tom Lee predicted that a string of successful Bitcoin spot ETF applications would shift Bitcoin’s supply-demand dynamics to of substantial price appreciation.
When asked what Bitcoin’s price will be by the end of next year, Lee didn’t hold back:
“If the Bitcoin spot (ETF) is approved, I think the demand will be greater than the daily supply of Bitcoin, so the price will clear […] over $150,000, maybe even like $180,000.”
Lee clarified that this could happen as long as it is an area approved in the United States Bitcoin ETF, as there are already spot Bitcoin ETFs in Europe.
“If the Spot #Bitcoin ETF approved … the clearing price of $BTC more than $150,000.” – Tom Lee @fundstrat pic.twitter.com/ILQZqdjsZA
— Michael Saylor⚡️ (@saylor) August 16, 2023
The United States currently accounts for 97.7% of global trading volume for crypto-related ETFs, according to Bloomberg senior ETF analyst Eric Balchunas. If spot Bitcoin ETFs are approved, it could be 99.5%, he said.
However, even if spot ETF applications are rejected, Lee still predicts a big price push to come from Bitcoin’s next halving event, which is expected to happen in April 2024.
“Your supply will decrease again, so the clearing price will have to increase. But it’s not six figures.”
In June, Wall Street heavyweights Fidelity, Invesco, Wisdom Tree and Valkyrie followed the world’s largest asset manager BlackRock in applying for a Bitcoin spot ETF with the SEC.
However, some of these companies may not learn their fate until 2024 because the SEC has up to 240 days to make a final decision on an application after starting the review process.
The result of Grayscale’s appeal to convert its GBTC trust product into a Bitcoin spot ETF is expected to come soon.
Bloomberg ETF analysts Eric Balchunas and James Seyffart recently estimated that there is a 65% chance of these Bitcoin spot ETFs being approved by the securities regulator – a significant increase from before the application of the BlackRock.
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Some say a $100,000 Bitcoin price could come sooner than expected, with Blockstream CEO Adam Back recently betting that Bitcoin will hit the new price milestone this month before the emergence event.
However, not everyone is inclined to agree. Jesse Myer, the co-founder of the Bitcoin investment firm Onramp, explained on August 15 that the market price only changed reality 12-18 months post-halving.
“Bitcoin won’t go above $100k before the next breakout,” he said.
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