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In financial circles, speculation is intensifying that if the United States Securities and Exchange Commission (SEC) approves a Bitcoin exchange-traded fund (ETF), the leading cryptocurrency could soar to an astonishing $185,000, increasing more than sixfold from its current value.
As of August 30, Bitcoin is trading just under the $30,000 threshold. Nevertheless, it remains resilient against market fluctuations. During a discussion on CNBC, Tom Lee, a regular analyst on Bitcoin’s price movements, shared insights that stirred interest. Lee suggested that the approval of a spot ETF would absorb Bitcoin’s daily supply. With demand significantly surpassing supply, this disparity could act as the catalyst driving the coin’s price toward $185,000.
Looking at the broader picture, Bitcoin’s tumultuous history is well recorded. Despite experiencing a significant decline over the past 20 months, it continues to be the leading asset in the cryptocurrency sector by market capitalization. Bitcoin reached an impressive $69,000 at its peak before the market shifted in 2022. A substantial selloff ensued, causing its price to drop below $16,000 in November 2022. However, Bitcoin made a notable recovery, climbing 50% from its November lows and exceeding $31,000 in July 2023.
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The crypto community is now intently focused on the SEC, the stringent regulator of financial policies. The SEC has previously dismissed requests for a direct ETF that tracks Bitcoin prices. While it did approve a Bitcoin Futures ETF, the industry is advocating for a direct spot BTC ETF.
Following the significant court ruling on August 29 that supported Grayscale’s argument that their Bitcoin spot ETF was protected from market manipulation, the crypto community felt optimistic. The SEC encountered a challenge, yet the court did not direct them to approve the ETF. However, after observing Bitcoin’s price surge from $25,800 to $28,000 following the verdict, an increasing number of observers believe the SEC may be pressured to approve the ETF sooner rather than later.
Compounding the situation, on August 30, Bloomberg’s senior ETF analysts, Eric Balchunas and James Seyffart, raised their forecast for SEC approval of a spot ETF in 2023 to 75%, up from their previous estimate of 65%. If 2023 does not yield results, they anticipate a 95% likelihood of approval in 2024. Their confidence stems from the court’s recent clear position in the SEC vs. Grayscale case, which has put the SEC in a difficult position and resulted in negative publicity due to media coverage.
Bitcoin’s future is uncertain in this ongoing situation, with the SEC controlling the outcome. The cryptocurrency community observes, anticipates, and speculates.
The post Bitcoin Price Could Skyrocket if SEC Approves Spotlighted ETF appeared first on BitcoinWorld.
