Bitcoin over $100K in 18 months? Here’s why this exec thinks so…

Posted: February 20, 2024

• Upcoming Bitcoin halving is anticipated to set off a provide shock, doubtlessly driving the value in the direction of new highs
• Introduction of spot Bitcoin ETFs has introduced new modifications, with Wall Road traders getting into the crypto-market

As Bitcoin (BTC) approaches its subsequent halving occasion in April 2024, the cryptocurrency market is on the point of a big provide shock. One that would have profound implications for its worth and adoption. This discount in provide, towards a backdrop of accelerating demand, significantly from institutional traders, may set off a scarcity.

A provide shock wave awaits Bitcoin post-halving

In a current interview with Fox Enterprise Unique, Anthony Pompliano, founder and investor at Pomp Investments, shed some mild on the inevitable “provide shock wave” that awaits Bitcoin’s future post-halving. In response to the exec, this provide shock might result in a dramatic improve in Bitcoin costs by the top of this yr, following the halving. 

He additionally talked about,

“We’re presently at $52,000. If this continues, there’s a probability that we may very well be close to the all-time excessive ($69,000) when the halving happens, and that can be an unprecedented occasion.”

Crossing $50K – Bitcoin ETFs driving up costs

The rationale behind this prediction lies within the basic provide and demand dynamics. As miners can be incentivized to promote much less BTC on account of elevated profitability per mined Bitcoin, the discount in internet BTC provide is anticipated to push costs increased. 

Considerably, the approval of spot Bitcoin ETFs by the SEC has already modified the provision dynamics of Bitcoin, contributing to this bullish sentiment. There was a fast accumulation of Bitcoin by prime ETF suppliers, reminiscent of BlackRock, which have reportedly purchased over $4.3 billion price of BTC in a really brief interval.

Moreover, Pompliano hinted at some “new varieties of traders” who may enter the crypto-market. On being questioned about this, he commented,

“Bitcoin is now the favourite asset of any Wall Road investor. By means of Bitcoin ETFs, they’ll now allocate capital to one of many best-performing belongings within the final 15 years.”

A $100K future? Analyst stays assured

Nonetheless, whereas the potential for important value will increase exists, the cryptocurrency market’s maturity and elevated regulatory and institutional participation may result in a extra tempered value response in comparison with earlier halving occasions. This has not dampened Pompliano’s confidence in Bitcoin although. When requested how excessive the costs may go, Pompliano acknowledged,

“Traditionally, Bitcoin’s costs have gone up by 100’s of p.c. I wouldn’t be shocked if Bitcoin went over $100,000 within the subsequent 18 months.”

Larger adoption, increased costs

2024’s BTC halving occasion represents a crucial juncture for the cryptocurrency market. With Bitcoin ETFs dominating the market, analysts really feel assured in regards to the SEC favoring ETH and different crypto ETFs sooner or later. In actual fact, Pompliano believes that these ETFs will enhance the scope of mainstream crypto-adoption.

There’s a lingering hope that the cryptocurrency neighborhood will proliferate and grow to be extra mainstream, in the end main to cost hikes.