Spot Bitcoin ETF Approvals to Push BTC Up To $73,000, Likely Adding $1 Trillion To Crypto’s Market Cap ⋆ ZyCrypto
The post Spot Bitcoin ETF Approvals to Push BTC Up To $73,000, Likely Adding $1 Trillion To Crypto’s Market Cap ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement     A recent study conducted by CryptoQuant, an on-chain analytics firm, has suggested that introducing spot Exchange Traded Funds (ETFs) for Bitcoin may significantly bolster the cryptocurrency’s market capitalization by approximately $1 trillion. According to the firm, while the approval of these ETFs is not anticipated in the immediate future, recent favourable court rulings in the cases of Grayscale’s GBTC Fund and XRP against the SEC have improved the chances of approval by the final deadline in March 2024. Upon the eventual approval of these ETFs, CryptoQuant predicted an influx of roughly $150 billion into the Bitcoin market, potentially increasing Bitcoin’s market cap by anywhere from $450 billion to $900 billion. This growth is expected to occur as more institutions and retail investors embrace cryptocurrency. To support its argument, CryptoQuant highlighted that during bullish phases, new capital inflows lead to a rise in realized cap as coins change hands at higher prices than their initial purchase. Concurrently, the market cap experiences even more rapid growth due to the revaluation of market prices. Notably, historical data reveals that during previous market peaks, such as December 2017, March, and November 2022, Bitcoin’s market cap expanded three to nearly five times its realized cap, indicating that for every $1 of new investment, the market cap increased by $3 to $5. The study also emphasized that the expected surge in market capitalization would surpass the previous inflow of funds into the GBTC Fund during the last bull market cycle. GBTC currently stands as the largest Bitcoin fund, holding over 620,000 Bitcoins. Advertisement     Furthermore, the analysis suggested that the anticipated increase in Bitcoin’s market capitalization could potentially lead to a substantial rise in Bitcoin’s price, ranging from $50,000 to $73,000. CryptoQuant’s findings echo those of crypto analyst “Robin C” who recently…
Filed under: News - @ October 21, 2023 10:12 pm