Bitcoin’s price experienced a rollercoaster ride this week, plunging to $40,000 before rebounding with surprising strength. At the time of press, BTC is trading at $44,180.
According to a recent Forbes report, this sudden surge can be attributed to a renewed buzz surrounding the potential approval of a Bitcoin Spot ETF, which also helped Ethereum (ETH), XRP, and Solana (SOL) recover from the flash crash.
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The price drop on Tuesday stemmed from anxieties regarding a potential rejection of the long-awaited ETF by the U.S. Securities and Exchange Commission (SEC). However, Forbes reports that the tide quickly turned as AllianceBernstein analysts, Gautam Chhugani and Mahika Sapra, issued a remarkably optimistic forecast for the future of Bitcoin and other crypto assets such as Ethereum, XRP, and Solana.
Their report, obtained by MarketWatch, predicts a meteoric rise for Bitcoin (BTC), reaching a staggering $80,000 before the end of 2024, which is expected to send its market cap to $1.5 trillion. This surge, they believe, will be fueled by a snowball effect triggered by the approval of a Bitcoin ETF.
“Bitcoin ETF flows build-up could be gradual,” the analysts explain, “but the applicants will be fighting hard to get a lead into this massive asset accumulation game, tuning up advertising and bitcoin branding leading to a snowball effect.”
The potential approval of a Bitcoin ETF has been a hot topic in the crypto world for years, with Wall Street giants like BlackRock actively lobbying for its implementation.
AllianceBernstein estimates that if approved, such an ETF could attract $5 billion in inflows within the first half of 2024, potentially doubling to $10 billion in the second half. By 2028, they predict that a staggering 10% of all Bitcoins could be held under ETFs.
However, the analysts acknowledge the potential for short-term volatility following the ETF’s approval. They expect a “fairly brief and shallow selloff,” as early investors take profits.
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Beyond the ETF buzz, other factors contribute to the optimistic outlook for Bitcoin. The upcoming April 2024 Bitcoin halving, which will reduce the Bitcoin rate by 50% or half, is expected to bolster its value further.
Additionally, the growing trend of companies like MicroStrategy and Tesla adding Bitcoin to their balance sheets is seen as a sign of increasing institutional adoption and confidence in the cryptocurrency.
However, the future remains uncertain, as a notable lawyer in the crypto space expects an SEC rug pull ahead of the ETF approval. But the recent price surge and optimistic predictions from renowned institutions like AllianceBernstein paint a promising picture for Bitcoin. The flagship crypto and the broader cryptocurrency market have an interesting few months ahead.
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