- U.S. spot Bitcoin ETF approval could instigate a significant price surge, potentially reaching $42,000 within 100 days.
- The current market is significantly undervaluing the transformative impact of U.S. BTC ETFs on Bitcoin’s price trajectory.
The potential green light for spot Bitcoin exchange-traded funds (ETFs) in the U.S. might catalyze a formidable rise in Bitcoin’s value, possibly breaching the $42,000 threshold within 100 days of the approval, as cited in a recent tweet by Vetle Lunde, Senior Analyst at @K33Research.
The market is wrong – and dramatically underestimates the impact of U.S. BTC ETFs (and ETH futures-based ETFs).
It's a relatively simple exercise to elaborate on my view:
1. Odds for U.S. spot ETF approval have never been better
2. BTC is trading at pre-BlackRock announcement… pic.twitter.com/WDnlCAddIv
— Vetle Lunde (@VetleLunde) September 8, 2023
Lunde asserts that the market has not fully grasped the magnitude of the U.S. BTC ETFs’ impending influence. His analysis reveals that the chances for a U.S. spot ETF approval are currently at their zenith. Historical data underscores the potent bond between substantial BTC investment inflows and the cryptocurrency’s price appreciation.
Anticipated Surge in BTC Capital Inflows
The possible ETF nod from the U.S. Securities and Exchange Commission (SEC) is expected to result in a massive capital influx into Bitcoin. Using the Canadian market as a benchmark, Lunde highlighted that the Purpose Bitcoin ETF in Canada saw an inflow of 11,141 BTC, accumulating a total of 58,000 BTC from various Canadian ETFs in their first four months. Given the broader market base of the U.S. in comparison to Canada, the effects post the spot Bitcoin ETF approval might be more pronounced.
Bitcoin’s Price Landscape
Currently, Bitcoin’s valuation stands at $25,867, reflecting a 12.3% reduction over the preceding month. This decline has been prevalent since the SEC decided to postpone its rulings on several Bitcoin ETF proposals. With historical trends suggesting a direct link between robust BTC investment inflows and Bitcoin’s price escalation, the potential approval of the spot Bitcoin ETF could reshape the cryptocurrency market landscape.