Bitcoin ETFs Approved: Market Predictions and Impact on Future Price
Summary:
Bitcoin ETFs got the green light from the SEC on January 10, causing market speculations and a fluctuation in Bitcoin prices. As the Bitcoin halving nears in April, expert opinions from Cointelegraph staff forecast varying outcomes, with majority expecting an increased price by the year's end. Nonetheless, the perspectives offered should not be considered definitive investment advice, given previous predictions have missed the mark considerably.
On January 10, a string of Bitcoin ETFs were greenlit by the Securities and Exchange Commission (SEC), stirring rumors regarding how markets may respond in the forthcoming weeks. After the announcement was made, Bitcoin (BTC) soared to $49,000 before plummeting to a little over $43,000 by January 12, a series of unpredictable moves that likely caught many by surprise. As we approach the Bitcoin halving slated for April, opinions vary on what the future holds. To help decipher these events, we've gathered views from several Cointelegraph staff and contributors. However, bear in mind that past forecasts have missed the mark by five-figure sums, so this shouldn't be taken as investment advice, unless you're open to potentially losing money.
Tom Blackstone, reporter, weighed in on the ETF approvals' impact. He believes that when we look back at January, it won't simply be categorized as a "buy the news" or "sell the news" event. He points out that the price of Bitcoin only just breached resistance on December 31, finishing at $42,265, which exceeded his previous prediction by $2,265. Basing his future predictions on historical trends, he anticipates that Bitcoin will reach a new all-time high by the year's end, with little impact from the ETF news beyond the first two months following the announcement.
Lucas Kiely, Chief Investment Officer at Yield App, foresees a minor "sell the news" activity, largely among short-term traders, while the majority of Bitcoin holders will retain their assets, especially in light of the impending Bitcoin halving, a historically major catalyst. He expects the price to rise post-halving, but emphasizes the importance of patience as it may take a while to see a new all-time high.
Christos Makridis, Associate Research Professor at ASU, regards the Bitcoin ETF as a pivotal development for digital asset prices this year. He predicts an increase in economic and political uncertainty, further inflating the attractiveness of digital assets as safe havens.
Moving on to the analytics, Ray Salmond, Head of Markets, spotlights the importance of institutional portfolio allocations to Bitcoin and the influence of the upcoming Bitcoin halving. He hopes Bitcoin will stabilize in the $50,000 to $56,000 range over the next two months, gaining strength as we head towards the halving.
Lastly, Rudy Takala, Editor, acknowledges the challenge of making short-range projections given the near-total reliance on speculatory behavior. Long-term, Takala is bullish about Bitcoin, pointing out that if it emulates its performance from the last halving year, Bitcoin could end the year at an astounding price exceeding $200,000. However, he warns this figure might seem outrageous at the moment due to the substantial difference in market capitalization from 2020.
This is an informative article and must not be misconstrued as legal or financial advice. It reflects the personal opinions of the author and may not align with Cointelegraph's views or opinions.
Published At
1/13/2024 11:49:17 PM
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