By
Temitope Olatunji
April 26th, 2024
Anticipation is building for the approval of a spot Bitcoin ETF in January 2024. If it happens, it could bring a significant influx of at least $12 billion to $14 billion into the BTC market, potentially driving up the price.
A bold Bitcoin (BTC) price prediction by CEO Adam Back of blockchain technology company Blockstream has sparked both optimism and skepticism within the cryptocurrency community. Back believes BTC could exceed $100,000 per coin before its next halving event, but his outlook goes against trends that the coin has had during the last halving events. During those times, the price of the crypto has seen a significant rally after the halving instead of before it.
Bitcoin halving occurs every four years, and it is done to reduce the supply of new BTC that enters circulation by 50%. The last one occurred in 2020, and the next one has been programmed to occur in April 2024.
The discussion originated when analyst Vijay Boyapati questioned if Bitcoin could set an all-time high price ahead of its upcoming halving, expected in early 2024. Confidently, Back replied affirmatively and specifically mentioned that the most popular crypto will attain $100,000 before the halving.
#Bitcoin ATH before the halving for the first time ever?
— Vijay Boyapati (@real_vijay) December 2, 2023
While some observers share Back’s bullish sentiment, critics emphasize the inherent unpredictability still surrounding cryptocurrency markets. They mentioned the essence of caution even around expert projections, as the crypto market is very volatile, especially for newcomers who may take predictions as guarantees rather than possibilities.
Beyond the $100,000 mark before halving, Blockstream CEO also believes that a shortage of supply and an increase in demand could drive the price to as high as $1 million one day. With Bitcoin currently all-time high at $69,000, some express skepticism around the feasibility of such predictions. However, those who support his view also believe that the influx of institutional investors from major financial institutions around the world could push the price to as high as that.
Approval of Spot Bitcoin ETF Could Trigger Early Price Rise
Although historical data suggests that the price of BTC tends to soar to new all-time highs after halving events, it is important to acknowledge that this may not always be the case. The cryptocurrency landscape is evolving rapidly, and it has matured significantly since the last halving occurred.
Moreover, there are expectations that the much-awaited approval of a Spot Bitcoin ETF will happen in January 2024. If this prediction holds true, a substantial influx of funds from financial giants like BlackRock, Fidelity, Grayscale, and traditional investors is anticipated. Some experts say that the first few months could witness an inflow of around $12 billion to $14 billion. Such a development would undoubtedly have a significant impact on the total market capitalization of the cryptocurrency, which currently stands at around $800 billion.
The scarcity Bitcoin will have due to the upcoming halving events and the substantial involvement of traditional institutions could potentially drive the price to unprecedented heights. This outcome would validate the assertions made by CEO Adam Back regarding the possibility of BTC reaching $100k before the April 2024 halving event and $1 million after it. The CEO’s statement, along with similar remarks by other influential figures, has sparked debates within the crypto community. Ultimately, only time will reveal whether his prediction holds.