If the United States Securities and Exchange Commission (SEC) approves a spot bitcoin exchange-traded fund (ETF) anytime in the coming days or weeks, one expert is confident that BTC prices could soar more than 6x to $185,000. Will happen
As of August 30, BTC is falling below $30,000 but remains stable.
Bitcoin to $185,000?
recently on cnbc InterviewTom Lee, who regularly comments on bitcoin prices, said the spot ETF would wipe out all the daily supply of the world’s most valuable cryptocurrency, creating an “imbalance” that would inevitably drive prices up. . Based on this, demand will greatly exceed supply, which will push prices towards $185,000 or higher.
Despite a sharp contraction over the past 20 months, bitcoin remains the world’s largest cryptocurrency by market cap.
At the peak, BTC surged above $69,000 for a change in sentiment in 2022, triggering a sell-off that led to a more than halving price drop to below $16,000 in November 2022.
While prices have since recovered, rising more than 50% from November 2022 lows to over $31,000 at the end of July 2023, the crypto and bitcoin communities are keeping an eye on the SEC.
Strict regulators are adamant, rejecting previous applications for complex ETF derivatives that directly track bitcoin prices. While the SEC has approved a bitcoin futures ETF that tracks an index that aggregates prices from multiple regulated exchanges, the emerging industry calls for a spot BTC ETF.
Spot ETFs Likely To Get SEC Approval?
Following a court ruling on August 29 that supported Grayscale’s claim that strong measures were in place to protect their bitcoin spot ETF from market manipulation, the community cheered. The ruling was damaging to the SEC, but the court did not mention or guide the regulator in approving bitcoin ETFs.
Nonetheless, after bitcoin prices skyrocketed from around $25,800 to $28,000, there is a section of optimists who believe that the SEC has little leeway and will look to greenlight bitcoin ETFs in the coming weeks, if not months. There is no other option.
On August 30, Eric Balchunas and James Seifert, two senior ETF analysts at Bloomberg, increased Their chances of the SEC approving a spot ETF in 2023 are 75% (up from 65%). If it doesn’t get approved this year, he estimates the regulator will probably allow entities to make the product next year as their chances are 95%.
His confidence stems from the fact that the “unanimity and decisiveness” of the recent court decision in the SEC v. Grayscale case “surpassed expectations” and that the SEC had “little leeway”. Furthermore, in his assessment, the decision was widely overruled. The SEC has suffered a “PR” loss since being covered.
Feature image from Canva, chart from TradingView