Bitcoin has been having a hard time since it hit strong support at $38,500. It is now worth $36,924, which is 1.1% less than it was 24 hours ago. There was a strong retracement after the top coin’s current pullback started, after it reached a high point of $38,400 on Saturday.
Bitcoin’s Surge Fueled By Greed, Optimism, And Anticipation Of Key Events
However, CoinMarketCap’s Crypto Fear and Greed Index is now at 71/100, which is in the “greed” zone. As things stand, some crypto leaders are backing Bitcoin to get another boost.
At the moment, the crypto market is going up. This is because investors are optimistic because they are looking forward to the Federal Open Market Committee (FOMC) minutes.
Additionally, rumors about the possible acceptance of a BTC Spot ETF and other events add to the market’s ongoing upward trend.
Crypto Fear & Greed Index. Source: CryptoMarketCap
Markus Thielen, Head of Research at DeFiResearch.com, talks to Yahoo Finance about what the approval of this ETF could mean for bitcoin and the crypto space, as well as why he thinks Bitcoin could hit a high price target if it is approved.
Thielen said that investors in precious metals ETFs in the US have put about $120 billion into them. These ETFs hold gold and silver.
He said that putting just 10 to 20 percent of these investments into Bitcoin could bring in about $25 billion. From what they could tell, each extra $1 billion could have an effect on the price of 4%. As a result, he said, “we might see a price trend approaching $57,000.”
Bitcoin currently trading in the $37K territory. Chart: TradingView.com
The Unique Dynamics Of A Bitcoin ETF Launch: Potential Impact On Crypto Market
Marcus talks about the upcoming spot Bitcoin ETF in preparation of a major event that will boost Bitcoin. It’s interesting that earlier launches in other countries didn’t cause a big rally.
This time, the difference is that the United States has the most cash and most ETFs are based there. There have been attempts to bring ETFs to Asia for a long time, but they haven’t caught on very well. This could be because investors in the US market are different from investors in other areas.
Thielen goes on to say that many institutions have a big impact on the United States and that these institutions use ETFs a lot in their asset allocation plans.
The registered financial advisor community is a big part of this scene; they are in charge of managing $5 trillion or even more. It could have a big effect if even a small part of this huge amount, about 50 billion dollars, switched to Bitcoin, he said.
Forecasting Bitcoin’s Future: Examining Market Cap Dynamics And Price Predictions
By figuring out how market cap changes, we can get a sense of what might happen to the price of Bitcoin. As a result of the grayscale case, some judges have recently asked the SEC to reevaluate their estimates, which shows that the regulatory landscape has changed.
Dan Tapiero predicts Bitcoin could reach $100,000 in the next two to five years.
Tapiero compared Bitcoin to traditional assets like real estate and physical works of art, which are commonly used as inflation hedges.
— Benzinga (@Benzinga) November 25, 2023
Meanwhile, economic expert and investment manager Dan Tapiero said that he thought Bitcoin would go up in value during the next bull run. A lot of well-known investors already think that the price of Bitcoin will be between $500,000 and $1 million over the next 10 years. Tapiero, on the other hand, thinks that it will be around $100,000 in the next few years.
Now that the price is below $40,000, the next bull run should cause it to rise by three times that amount. According to Tapiero, the next bull run would happen in 2025, when the most valuable cryptocurrency could hit more than $100,000.
Featured image from iStock