Bitcoin Price Expected to Surge with US Spot ETFs, Says Fundstrat Analyst

The value of Bitcoin, a popular digital currency, might significantly soar and could reach up to $150,000 by the end of 2024, depending on the approval of specific Bitcoin-focused exchange-traded funds (ETFs) in the United States. This bold forecast comes from the investment research company, Fundstrat.

Tom Lee, a prominent figure and research chief at Fundstrat, recently shared on CNBC’s Squawk Box that the successful approval of several Bitcoin spot ETF applications in the U.S. could result in an imbalance between Bitcoin's supply and demand. This imbalance is projected to drive its value upwards. Lee elaborated that should these U.S.-based Bitcoin spot ETFs receive the green light, there might be more demand than Bitcoin’s daily supply, pushing its value over $150,000, and even possibly reaching $180,000.

It's important to note that Europe has already approved similar Bitcoin ETFs. However, the potential U.S. approval is particularly significant due to the nation's dominant role in the crypto-related ETF market. Recent data shows that the U.S. is responsible for nearly 97.5% of the worldwide trading volume in these ETFs, as stated by Bloomberg's seasoned ETF analyst, Eric Balchunas. If U.S. Bitcoin spot ETFs get approved, this figure might escalate to 99.5%.

But Bitcoin enthusiasts shouldn’t fret if the spot ETF applications don't make the cut. Lee also sees a price hike from Bitcoin's upcoming halving event in April 2024. Though the potential spike might not touch six figures, it's still anticipated to be noteworthy.

Several influential finance institutions, such as Fidelity, Invesco, Wisdom Tree, Valkyrie, and even the global asset leader BlackRock, have approached the U.S. Securities and Exchange Commission (SEC) to secure approval for a Bitcoin spot ETF. The SEC's review process, however, can be lengthy, taking up to 240 days, which means some firms might only get an answer by 2024.

Bloomberg ETF specialists, Eric Balchunas and James Seyffart, recently estimated that the chances of these ETFs getting SEC approval are around 65%, a notable jump following BlackRock’s application.

Still, not all experts share this optimism. Jesse Myer from Bitcoin investment company Onramp emphasized that any market adjustments due to halving might only be noticeable 12-18 months after the event.

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