Bitcoin could soon see both demand and supply shock. Check out the latest reports about the new price prediciotns for the most important digital asset.
New Bitcoin prediction is out
An advocate of Bitcoin, Anthony Pompliano, believes that the cryptocurrency may experience two types of shocks in the near future that could lead to a repeat of the 2020 bull market.
Pompliano predicts that regulators will eventually approve a Bitcoin exchange-traded fund that is based on spot prices. If this happens around the time of the next halving of Bitcoin, it could trigger a full-fledged bull market.
“We have futures-based ETFs. I think we will get a spot Bitcoin ETF. The question is when.
One of the things people are not talking about, though is this ETF is going to be a demand shock.
There are going to be assets to flow into this industry when that occurs. But the closer and closer we get to the halving, it will coincide with a supply shock in that halving, and I think that we could see a repeat of 2020 where we go up quite significantly in price if that occurs.”
According to estimates, the halving of BTC miners’ rewards is set to occur in April 2024. It is predicted that once a Bitcoin ETF is available in the market, blue-chip investors will be drawn towards the leading cryptocurrency.
Retail investors who have been seeking exposure to Bitcoin over the past few years have already found ways to do so, and there may not be significant inflows from them.
However, sovereign wealth funds and large institutions are unlikely to purchase spot Bitcoin on Coinbase, and this is where ETF inflows may occur. As of now, Bitcoin is being traded at $25,872.
Stay tuned for more exciting news from the crypto space and make sure to keep your eyes on the market as well.
