Ash crypto, a prominent figure in the cryptocurrency trading community, foretold that US spot bitcoin exchange-traded funds (ETFs) could push btc price to $500,000.
bitcoin will follow the success story of the Gold ETF
The reason behind Ash crypto's forecast arises from a comparison with gold, whose market capitalization saw a significant increase after the introduction of its ETFs. Historically, gold's market capitalization rose from about $2 trillion before ETFs to about $16 trillion in the following years.
Ash crypto posits that with its finite supply and growing popularity, bitcoin could not only replicate but potentially surpass gold's post-ETF trajectory. Considering bitcoin's current market cap of around $840 billion, reaching even half the market cap of gold would catapult btc's value to “$500,000 in the next few years.”
bitcoin is going to reach $500,000 after the
Spot ETF is approval. Here is the
evidence –When the Gold ETF was approved, it is
mcap was around 2 billion dollars. After
Gold ETF saw huge liquidity inflows
and reached 16 billion dollars in a few years.
(Don't forget that the supply of gold is not fixed,
us… pic.twitter.com/uE6XKkHWtU– Ash crypto (@Ashcryptoreal) January 14, 2024
The implications of bitcoin's growing market capitalization extend beyond the cryptosphere, encroaching on traditional financial markets. Ash crypto points to the colossal market capitalizations of the global stock and bond markets, which amount to $109 trillion and $133 trillion, respectively.
The cryptocurrency trader suggests that as bitcoin continues to establish itself as a legitimate financial asset, it will likely absorb a significant portion of the market capitalization of these traditional markets. This belief is based on the notion that bitcoin offers a “novel value proposition, aligned with the investment preferences of a new generation of investors.”
Adding to this outlook, several trillion-dollar companies have started promoting bitcoin, signaling the arrival of institutional investors into the cryptocurrency market.
These developments indicate a growing recognition of bitcoin as a mainstream financial asset, further supporting the potential for a significant increase in its market capitalization. The cryptocurrency trader noted:
Now we have billion dollar companies selling us bitcoin shillings with ads. The institutions are finally here and billions are entering crypto boyz!
Ash crypto further emphasizes that the journey towards an $8 trillion market capitalization is a “long-term” vision that will not “happen overnight,” and advises investors to keep their focus beyond the volatility ahead. short term of the market.
Global Mega Bank foresees a price target of $200,000
Additionally, echoing Ash crypto's bullish stance, Standard Chartered head of digital asset research Geoff Kendrick and precious metals analyst Suki Cooper forecast a six-digit price target for bitcoin.
They project a potential target of $200,000 for bitcoin, depending on an influx of $50 to $100 billion into bitcoin Spot ETFs. Their predictions draw parallels between the historical impact of gold exchange-traded products (ETPs) and the expected trajectory of bitcoin spot ETFs, foreseeing rapid development for the latter compared to the former.
Meanwhile, over the past week, bitcoin has shown bearish price action. The asset has notably plummeted over 5% during this period and has continued to fall even in the last 24 hours by 1.1%, with a current trading price of $42,419 at the time of writing.
Featured image from Unsplash, chart from TradingView
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