“Trillion Dollars” – Bitcoin is poised for a massive earthquake as the price of Ethereum, Binance’s BNB, Solana, Cardano and XRP rise
Bitcoin and cryptocurrency prices have skyrocketed last month, with the combined crypto market climbing to $ 3 trillion as Ethereum, Binances BNB, Solana, Cardano and XRP hit double-digit percentage gains.
Subscribe to Forbes’ CryptoAsset & Blockchain Advisor now and discover hot new NFT and crypto blockbusters ready for 1,000% profit
Bitcoin price has soared from around $ 45,000 per bitcoin in early October to an all-time high of $ 67,000 at the end of last month, in part due to the introduction of the first US bitcoin futures exchange-traded funds (ETFs). Bitcoin has recently fallen behind – despite huge new price targets, even as Ethereum and its smaller rivals hit new highs.
Now, Michael Saylor, an optimistic Bitcoin buyer, has predicted that “trillions of dollars” will pour into Bitcoin once the US regulator approves a full-fledged Bitcoin ETF – which helps Bitcoin replace gold and become the main asset index for them western world to become.
Register now for the free CryptoCodex—A daily newsletter for those interested in crypto. We help you understand the world of Bitcoin and Crypto, every day of the week
Bitcoin price has risen through 2021, but much of the gains in the crypto market come from … [+]
SOPA Images / LightRocket via Getty Images
“You need the spot ETF for that,” said Saylor, CEO of business intelligence software company MicroStrategy, at Bloomberg’s Financial Innovation Summit this week. “And as soon as those spot ETFs roll in, you’re going to see billions, then tens of billions, then hundreds of billions, and then trillions of dollars.”
In the past year, Saylor turned Microstrategy into a bitcoin acquisition tool, purchasing more than 110,000 bitcoins. The company’s Bitcoin holdings are valued at approximately $ 7 billion, making up almost all of MicroStrategy’s total market cap of $ 8 billion.
Saylor said he anticipates a U.S.-based spot bitcoin ETF would act as an institutional focal point for investors wanting bitcoin exposure, adding that he will continue to buy bitcoin through MicroStrategy. Such funds are already active in other countries, including Canada.
The launch of two U.S. Bitcoin futures ETFs in October garnered widespread media attention, with the ProShares Bitcoin Strategy ETF amassing more than $ 1 billion in assets in just a few days. However, some, including General Partner at Castle Island Ventures Nic Carter, have labeled futures-based ETFs “inferior” because they offer no direct exposure to the underlying asset. Carter, speaking alongside Saylor, said a spot Bitcoin ETF would be “the hottest commodity ETF launch ever.”
“The correct answer is: Let investors buy $ 1 trillion worth of bitcoins through an ETF because the ETFs will fit into the existing security structure, prime brokerages and collateral packages,” said Saylor.
KryptoCodex—A free, daily newsletter for those interested in crypto
Bitcoin price has increased more than 300% in the past 12 months, bringing Bitcoin to a trillion dollars … [+]
Meanwhile, bullish bitcoin and crypto market watchers continue to predict that prices will rise through the end of 2021. While Bitcoin has lost ground this week, Ethereum is up nearly 5%, with its biggest rivals, Binance’s BNB and Solana, both up around 20%.
“Intraday volatility is completely normal after such a bullish month, but the higher timeframe looks solid for the time being,” said Lukas Enzersdorfer-Konrad, Chief Product Officer of the Vienna-based Bitcoin and crypto trading platform Bitpanda, in e-mail comments. “The crypto market is being integrated more and more into the global economy every day, which only shows how important it is for larger institutions, but on the other hand is also under pressure from macro events.”
“A collapse of Bitcoin and Ethereum by the end of the year is more likely than a retracement, in our opinion, after the corrections in 2021 cleared speculative positions and maintained a bull market with rising demand and acceptance and falling supply,” said Bloomberg Intelligence senior commodities strategist Mike McGlone wrote in its latest market report, pointing to a “tidal wave of US ETFs”.
“The launch of US ETFs and the fact that cryptos are counteracting Chinese bans limit downside risks.”