- Bitcoin’s rollercoaster week linked to ETF speculation.
- AllianceBernstein predicts $1.5 trillion market cap and $80,000 value.
- Ripple (XRP) and Solana (SOL) benefit from the positive market sentiment.
In a week marked by turbulence, Bitcoin’s value took investors on a rollercoaster journey, plummeting to $40,000 before making a resilient comeback to $44,180 at the time of writing. Forbes attributes this surprising recovery to renewed speculation surrounding the potential approval of a Bitcoin Spot ETF, a development that also played a role in the rebound of Ethereum (ETH), XRP, and Solana (SOL) after the recent flash crash.
The initial downturn on Tuesday was fueled by apprehensions regarding the possible rejection of the long-anticipated ETF by the U.S. Securities and Exchange Commission (SEC). However, a Forbes report reveals a swift turnaround in market sentiment as analysts Gautam Chhugani and Mahika Sapra from AllianceBernstein issued an optimistic forecast for Bitcoin and other cryptocurrencies, including Ethereum, XRP, and Solana.
The duo’s report, acquired by MarketWatch, envisions a remarkable ascent for Bitcoin, projecting a staggering $80,000 valuation by the close of 2024, propelling its market cap to an impressive $1.5 trillion. The catalyst for this surge, according to the analysts, lies in a potential 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 prospect of a Bitcoin ETF has been a long-standing topic in the crypto realm, with industry heavyweights like BlackRock actively advocating for its implementation. AllianceBernstein estimates that if approved, the 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 foresee a scenario where 10% of all Bitcoins could be held under ETFs.
However, the analysts caution against short-term volatility post-ETF approval, predicting a “fairly brief and shallow selloff” as early investors capitalize on profits. Despite this, multiple factors contribute to the positive outlook for Bitcoin, including the impending April 2024 Bitcoin halving, which is anticipated to bolster its value by reducing the Bitcoin rate by 50%.
Furthermore, the increasing trend of companies like MicroStrategy and Tesla incorporating Bitcoin into their balance sheets is seen as a strong signal of growing institutional adoption and confidence in the cryptocurrency. Yet, amidst the optimism, a notable crypto lawyer expects an SEC rug pull ahead of the ETF approval, injecting an element of uncertainty into the future.
In conclusion, Bitcoin and the broader cryptocurrency market are poised for a captivating few months, marked by potential ETF approval, market fluctuations, and pivotal events like the Bitcoin halving, making it a fascinating period for crypto enthusiasts and investors alike.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.