“The financial world braces itself for the ‘Next Wave’ as a staggering $15.6 trillion Wall Street flood approaches, promising to surpass the remarkable price surges of Bitcoin, Ethereum, and XRP, igniting unprecedented opportunities for investors.”
The bitcoin and crypto markets are on the brink of a major shock, with one billionaire warning of a “cataclysmic” situation facing the U.S. dollar. As the U.S. dollar teeters on the verge of collapse, investors are turning to alternative assets like gold and bitcoin. In fact, one high-profile billionaire has announced that he is stockpiling both gold and bitcoin in preparation for the potential fallout.
This week, the bitcoin price experienced significant volatility due to a false report that a long-awaited bitcoin spot ETF had been approved by the U.S. Securities and Exchange Commission (SEC). This false report caused chaos not only in the bitcoin market, but also in ethereum, XRP, and the broader crypto market.
However, despite the recent market turbulence, bitcoin price models have revealed that the approval of a U.S. bitcoin spot ETF could potentially add $1 trillion to the overall market value of ethereum, XRP, and other cryptocurrencies. This could lead to a significant increase in bitcoin’s market capitalization.
The next wave of institutional adoption for bitcoin seems to be coming in the form of financial institutions offering bitcoin investing through ETFs. Companies like BlackRock and Grayscale are leading the charge, with Franklin Templeton also recently filing for a bitcoin spot ETF with the SEC. This influx of institutional money could dwarf the amount that flowed into the Grayscale bitcoin trust during the last price cycle.
If $155 billion were to enter the bitcoin market through these spot ETFs, it could potentially boost the bitcoin price to between $50,000 and $73,000, according to analysts. This would result in an increase in bitcoin’s market cap between 82% and 165%.
The SEC has been instructed by U.S. lawmakers to reexamine Grayscale’s application to convert its bitcoin trust to a fully-fledged ETF. Last week, the SEC declined to appeal a court order directing it to reconsider this application, leading investors to believe that Grayscale will eventually be successful in obtaining ETF approval.
Investors are increasingly confident in the possibility of spot ETF approval, as reflected in the narrowing discount of the Grayscale Bitcoin Trust. This narrowing trend began when BlackRock filed for its bitcoin spot ETF in mid-June 2023.
The first deadline for bitcoin spot ETF approval or denial is set for January 10, 2024, with other deadlines scheduled for mid-January and mid-March. These upcoming deadlines will be closely watched by the crypto community, as they could have a significant impact on the future of bitcoin and the broader crypto market.
Overall, the bitcoin and crypto markets are facing a period of uncertainty and potential volatility. Investors are advised to stay informed and navigate the market carefully in order to make the most of the opportunities that lie ahead.