Traders are closely monitoring the U.S. SEC’s decision regarding Bitcoin (BTC) ETF proposals from various institutions. Notably, BlackRock, the world’s largest asset manager, submitted its BTC ETF application in June 2023. This move aligns with other applicants such as WisdomTree and Invesco from the traditional finance sector, who are also seeking approval for their ETF proposals.
Potential Impact of ETF Approval on Bitcoin Price
Financial analyst Tom Lee recently shared his insights on the potential impact of ETF approval on Bitcoin’s price. Lee, a CNBC contributor, suggested that if the spot Bitcoin ETF gains approval, the resulting demand could outstrip the daily supply. In this scenario, Lee speculated that the price of Bitcoin could surge significantly, possibly reaching beyond $150,000 and even potentially exceeding $180,000.
Lee acknowledged the significance of the spot ETF’s approval in his assessment. He explained that approval could lead to heightened demand and subsequently drive prices higher. Conversely, if the ETF isn’t approved, Lee indicated that Bitcoin might continue to hover around its current price of $29,000.
Factors Driving Bitcoin Prices
Lee also emphasized that regardless of the ETF decision, there are other factors that could influence Bitcoin’s price trajectory. He highlighted the upcoming halving event scheduled for next year. This event involves reducing the rate at which new Bitcoins are introduced to the market, potentially resulting in price increases due to reduced supply. However, Lee clarified that even considering these factors, the price might not reach the six-figure range.
Source: https://coinpedia.org/bitcoin/bitcoin-price-prediction-if-spot-bitcoin-etf-gets-approved-heres-what-traders-can-expect/