BTC Continues to Surge in Hopes of Bitcoin ETF. Will it Cross $30,000?

• Bitcoin (BTC) price surged from $28,189 to $28,793.
• CryptoQuant says the approval of spot Bitcoin ETFs will make Bitcoin a $900B asset.

Bitcoin (BTC) prices exhibit a sudden rally following the recent news from Binance.US suspending direct U.S. dollar withdrawals. The price of BTC soared from $28,189 to $28,793 in the last 24 hours. Further, speculation continues to circulate within the crypto market regarding the potential approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). 

A recent report from data analytics firm CryptoQuant suggests that if the SEC greenlights Bitcoin spot ETFs, BTC could evolve into a $900 billion asset, and the entire crypto market might expand by a significant $1 trillion. This optimistic outlook is based on the premise that the next wave of institutional adoption could come through financial institutions offering clients access to Bitcoin via spot ETFs.

The report suggests that the potential inflow of funds into Bitcoin through spot ETFs could far surpass the investments seen in the Grayscale Bitcoin Trust (GBTC) during the previous bull market cycle. Also, the CryptoQuant estimates that if ETF issuers allocate just 1% of their Assets Under Management (AUM) to these ETFs, it could result in approximately $155 billion into the Bitcoin market. 

To put this into perspective, this sum represents nearly one-third of Bitcoin’s current market capitalization. If this scenario happens, it could apparently push Bitcoin’s price to a range between $50,000 and $73,000.

Will Bitcoin ETF Trigger Surge in BTC Price?

One example of the market’s sensitivity is the false report from Cointelegraph claiming that the SEC had approved BlackRock’s spot Bitcoin ETF. This unverified news promptly drove the largest cryptocurrency above the $28,600 mark, highlighting the potential for dramatic price spikes that may deter bearish sentiment.

At the time of writing, Bitcoin is trading at $28,661, representing a 2.3% increase over the last 24 hours and a 6% gain in the past week. If this trend continues, Bitcoin could potentially reach $30,979 and even breach $31,281 if it successfully overcomes the current resistance level. Conversely, a trend reversal could lead to Bitcoin falling to $27,813 and $26,500, with the latter level potentially triggering a further decline to $25,174.