With the increasing interest in the cryptocurrency market lately, many predictions and analyzes have been made about the future of Bitcoin. One of the latest names to join these predictions was Galaxy Digital. The crypto investment firm made an important prediction regarding the approval of spot Bitcoin ETFs in the US.
In its latest blog post, Galaxy Digital argued that the price of Bitcoin could experience a significant increase after the approval of these ETFs. Explaining the logic behind this prediction, Charles Yu, one of Galaxy Digital research managers, discussed in detail the effects of the approval of BTC spot ETFs on the cryptocurrency market in his blog post.
According to Charles Yu, “The approval of a US-regulated spot Bitcoin ETF will be one of the most effective catalysts for Bitcoin adoption.” Yu says BTC could rise by double-digit percentage points in the first year of the Bitcoin ETF’s approval.
According to the prediction in question, the price of Bitcoin will increase by 6.2% in the first month after the adoption of ETFs, and in the following months, this rate of increase will decrease slightly and finally reach 3.7% in the 12th month. If, as Yu claims, Bitcoin will last 1 year If there is a 74% increase in it, the price may rise to approximately $60,000. It is also worth noting that this prediction is based on the price calculation made by adapting the money inflows in gold ETFs to Bitcoin ETF products.
Besides these, Galaxy Digital also evaluated how the approval of Bitcoin spot ETFs could affect the overall size of the cryptocurrency market. Research manager Charles Yu stated that the cryptocurrency market could reach a size of $14.4 trillion in the first one-year period after approval. This shows that the influence of cryptocurrencies in the financial world is increasing and the growth in this field will accelerate.
Finally, Yu said the following about the future of Bitcoin in the coming months:
“Flows from ETFs, market narratives regarding the upcoming BTC halving event (April 2024), and the possibility of rates peaking or peaking in the near term, all suggest that 2024 could be a big year for Bitcoin.”
Bitcoin is trading at $34,474 at press time.
You can follow the current price movement here.