Bitcoin Price Prediction as ETF Decision Approaches – Buy the Rumors, Sell the News?
In the ever-shifting landscape of cryptocurrency, Bitcoin (BTC/USD) stands at a crucial juncture, currently trading at $42,279 with a modest increase of 0.28% on Monday.
As the market eagerly anticipates the decision on the debut of a Bitcoin ETF, a development that might initially seem underwhelming yet holds the potential to attract trillions of dollars in the long run.
This anticipation comes at a time when Bitcoin is experiencing soaring onchain fees, leading to a record mining revenue of $1.51 billion in December 2023.
The sentiment of ‘buy the rumors, sell the news’ looms over Bitcoin’s future, suggesting that the outcome of the ETF decision could significantly sway its market trajectory.
The debut of spot Bitcoin exchange-traded funds (ETFs) might initially see modest inflows, around $100 million, primarily from institutional investors, according to VanEck adviser Gabor Gurbacs. However, Gurbacs foresees a significant long-term impact.
He draws parallels with the gold market, noting that after the launch of gold ETFs in 2004, gold prices tripled in eight years, boosting its market cap from $2 trillion to $10 trillion.
Given Bitcoin’s fixed supply and scarcity, particularly due to halving events, it could experience a similar, albeit quicker, growth trajectory.
Many may be disappointed by the “initial impact” of a spot Bitcoin ETF, says VanEck adviser @gaborgurbacs. However, if gold ETFs are any indication, there’s no need to worry. https://t.co/ngXvD2EQDT
— Cointelegraph (@Cointelegraph) January 1, 2024
The key lies in Bitcoin ETFs’ ability to legitimize the cryptocurrency for institutional investors and nation-states. Bloomberg ETF specialists Eric Balchunas and James Seyffart also underscore the importance of
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