- The SEC approved 11 spot Bitcoin ETFs this week.
- The cryptocurrency is up 70% since October, and bulls believe it could rise further with the watchdog's announcement.
- Many expect the price of Bitcoin to exceed six digits by the end of 2024.
After months of speculation, the Securities and Exchange Commission on Wednesday finally gave its stamp of approval to 11 spot Bitcoin ETFs. And crypto bulls accurately pointed to the regulatory move as a potential catalyst to push prices above six digits for the first time.
Tom Lee, a perpetual bull at British bank Standard Chartered and Fundstrat, is one of the people who charted Bitcoin's path to above $100,000 in the lead-up to the SEC's announcement, as well as others. Analysts called January 10th a “watershed” and “game changer for cryptocurrencies.”
Market reaction has been muted so far, with large-cap tokens up less than 1% on Thursday, but this may be typical for investors. ”Buy rumors and sell newsBitcoin has soared 70% since late October and is currently trading at its highest level in nearly two years as the furor over the SEC's decision began to intensify.
The price will need to double again to reach $100,000, but regulated spot ETFs could attract large institutional investors to the crypto space, potentially reaching the milestone by the end of 2024. Some people think it's sexual.
6-digit price target
Standard Chartered is one company that is particularly bullish on Bitcoin. Earlier this month, the bank's strategists predicted that spot ETFs could generate $50 billion to $100 billion worth of inflows into the token this year, setting a price target of $200,000 by the end of 2025.
Meanwhile, Fundstrat's Lee said: CNBC interview On this day, the SEC announced its decision that it expects the token to appreciate between $100,000 and $150,000 over the next 12 months, and as much as $500,000 over the next five years.
“Supply is limited and demand for spot Bitcoin could potentially increase significantly.” [ETF] Now that we have the approval, I think we have the potential to reach about 500,000 cases within five years,” Lee told the media.
Carol Alexander, an economist at the University of Sussex, has successfully predicted that Bitcoin will slump in 2022 and then make an unexpected comeback last year, but she hasn't set her sights that high yet. He expects the price to be between $70,000 and $100,000 at the end of December.
“I think it's great for Bitcoin bulls in the short term. I've never been this bullish,” she told Business Insider in an interview Wednesday.
word of caution
However, not everyone in the financial world is satisfied with such a high price target.
Mohamed El-Erian, former CEO of PIMCO, said: Post to X On Thursday, he said that while the SEC's approval could be “transformative” for cryptocurrencies, it was unlikely to encourage broader use of Bitcoin.
“While all of these factors are noteworthy in establishing cryptocurrencies in the investment world, they do not significantly promote cryptocurrencies’ role as a potential global currency,” he wrote. “The outlook here remains more constrained.”
Even the SEC itself appears to be skeptical about Bitcoin's potential as an investment.in another statement On Wednesday, chairman Gary Gensler described the token as “a primarily speculative and volatile asset that can also be used for illegal activities such as ransomware, money laundering, and sanctions evasion.” terrorist financing. ”
