Cryptocurrency enthusiasts are optimistic about the future of Bitcoin, foreseeing a potential surge to over $100,000 in 2024. This anticipation follows a pivotal step by the U.S. Securities and Exchange Commission (SEC) in approving the first-ever U.S. spot Bitcoin exchange-traded fund (ETF).
The approval of Bitcoin ETFs is seen as a game-changer by many crypto investors, diversifying the range of investors gaining exposure to the world's top cryptocurrency. Despite the SEC's emphasis that the approval does not signal a willingness to endorse listing standards for crypto asset securities, market participants are optimistic about the impact on Bitcoin's price.
Although the immediate market reaction was subdued, investors believe that the true effects of the ETF approval will become more apparent over time.
ETFs enable more retail investors to indirectly hold Bitcoin through shares traded on stock exchanges. Notable financial figures, such as Anthony Scaramucci, founder of SkyBridge Capital, have been increasing their exposure to Bitcoin, Ethereum, Solana, and other cryptocurrencies, expecting a broader adoption of these assets.
Scaramucci expressed his belief that Bitcoin could reach its all-time high by the end of the year and potentially hit $100,000. He compared the ETF approval to the 2004 greenlighting of the first spot gold ETF, noting the potential for rapid value appreciation in the cryptocurrency market.
Vijay Ayyar, Vice President of International for Indian crypto exchange CoinDCX, stated that ETF approvals had been anticipated for some time. The next significant uptrend, according to Ayyar, may occur when Bitcoin purchases for the ETF itself begin, possibly in the coming weeks.
Despite regulatory challenges and past market uncertainties, the crypto industry is showing signs of resilience. The Bitcoin price, which had experienced a sharp decline in 2022 following the collapse of FTX, rebounded in 2023, rising by 152%. Industry executives consider the SEC's ETF approval as a catalyst for the start of another bull run.
In addition to the ETF approval, industry experts point to the upcoming Bitcoin halving event as a key factor influencing price gains in 2024. The halving, which occurs every four years, involves a reduction in rewards for miners, ultimately capping the total supply of Bitcoin.
Prominent figures like Tim Draper, founder of Draper Associates, predict Bitcoin's price could reach $250,000 by July, citing increased adoption and the halving event. Tom Lee, managing partner at Fundstrat Global Advisors, and Meltem Demirors, Chief Strategy Officer of CoinShares, are also bullish on Bitcoin's prospects, forecasting potential prices of $150,000 in the next 12 months and over $100,000, respectively.
As the cryptocurrency market gears up for a new phase, investors are closely watching for further developments and anticipating continued positive momentum for Bitcoin.