The potential approval of the BlackRock Bitcoin ETF has sent shockwaves through the crypto sphere. Wu Blockchain’s recent X post, citing Matrixport research report, speculates that if the ETF gets the green light, Bitcoin’s price could skyrocket to either $42,000 (a conservative estimate) or even a staggering $56,000 if an influx of $50 billion pours into the market.
So, what’s driving this optimism? An anticipated mammoth $300 billion surge into the Bitcoin market within the first year of the ETF’s existence. The fact that the U.S. SEC hasn’t raised objections to Grayscale’s success further fuels confidence in Bitcoin Spot ETFs.
Currently, Bitcoin is trading at approximately $28,333, with a close analysis of the 4-hour chart revealing intriguing patterns. Immediate resistance is $28,652, followed by critical levels at $29,100, $29,520, and $30,600. These indicators align with the research’s bold projections, potentially paving the way for a seismic shift in BTC’s value. Naturally, the question arises: how could Bitcoin climb to $42,000 to $56,000? Let’s see the rationale behind the report.
$30 billion Funds Awaiting for ETF Approval: Report
Imagine a crypto surge in 2023. That’s what Matrixport’s ‘Matrix onTarget’ report foresees, and it’s got us all excited. This bold forecast is based on factors like lower US inflation and a friendly economic environment. The report doesn’t just predict a comeback for Bitcoin and Ethereum; it says things will get way less bumpy in the crypto world.
Let’s talk about GBTC (Grayscale Investments’ Bitcoin Trust), the superstar of this story. It’s had a spectacular 167% growth this year, even outperforming Bitcoin, which increased by 71%. GBTC started the year at a -45% discount in net asset value (NAV), which improved to -43%. But the real game-changer came in June 2023 when Black Rock revealed its ETF application.
Matrixport’s research analyzed a group of 15,000 US registered investor advisors (RIA) handling a massive $5 trillion. These investors have the potential to change the game. Suppose just 1% of them suggest investing in Bitcoin.
In that case, we’re looking at a whopping $50 billion coming in. Now, imagine this: precious metals ETFs are worth around $120 billion, and if just 10-20% of those investors switch to a Bitcoin ETF for a change, we might see an incredible $12-24 billion flowing into the Bitcoin ETF. That is the power of ETFs; SEC’s recent talk with ETF issuers also adds a bullish picture for Bitcoin enthusiasts.
So, what if Blackrock’s Bitcoin ETF gets the thumbs up? If Tether’s market cap increases by $24 billion, a hint of what’s to come, Bitcoin could climb to $42,000 – the conservative estimate. With $50 billion flowing in (thanks to a 1% allocation from RIAs), Bitcoin could hit an impressive $56,000. The crypto revolution is knocking on our doors! Are you Excited?
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