Bitcoin, the leading cryptocurrency, might witness an unprecedented surge in its price, soaring to a staggering $180,000 before the scheduled halving in April 2024.
The surge is backed by investment research firm Fundstrat, which believes that the potential launch of a Bitcoin ETF by financial giant BlackRock could be a game-changer.
Investment research firm Fundstrat has made an eye-catching prediction, stating that Bitcoin’s price could skyrocket by an astounding 521% to reach $180,000 before the eagerly anticipated halving event in April 2024.
According to Business Insider, this optimistic forecast is largely attributed to the possibility of BlackRock launching a Bitcoin ETF. Fundstrat points out that Bitcoin’s daily demand and mining rewards currently stand at approximately $25 million each.
However, if a Bitcoin ETF were to exist, an extra $100 million of daily demand could flood into the market. Furthermore, with the scheduled halving event in 2024 set to cut daily mining rewards to just $12 million, there would be a significant imbalance between buyers and sellers, requiring the price to surge to maintain equilibrium.
Fundstrat’s analysts suggest a clearing price between $140,000 to $180,000 would be necessary to balance daily supply and demand under these conditions. The halving, a process that reduces mining rewards by half, has historically been a bullish signal for Bitcoin, leading to considerable price rallies.
Head of digital asset strategy at Fundstrat, Sean Farrell, believes that a multiplier effect of 4.0x to 5.0x is reasonable to expect for the Bitcoin network. Accordingly, for every $1 of demand, the market cap could increase by $4 to $5.
In addition, Farrell sees a 75% probability of a spot Bitcoin ETF getting approved in the near future, which could pave the way for new investors and a surge in demand for the cryptocurrency.
If approved, BlackRock’s Bitcoin ETF could witness a historic launch, potentially surpassing the record-holding Invesco QQQ ETF’s first-year inflows. This extraordinary development could even lead Bitcoin ETFs to exceed the precious metals ETF market, becoming a category worth more than $300 billion.
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