In a recently issued column by Forbes, an anticipation has been set that Bitcoin may witness an unprecedented surge in its price—a soaring $80,000 increment—triggered by the prospective green light of Spot Bitcoin Exchange-Traded Funds (ETFs) by the United States Securities and Exchange Commission (SEC).
Forbes, recognized for its sharp financial analysis, has underscored the potentially explosive effect the approval of Spot Bitcoin ETFs could impart on Bitcoin’s valuation. Pointing to the horizon of 2024, the publication projects that Bitcoin could escalate to a dizzying $80,000 peak.
MarketWatch shed light on this analysis, attributed to Anglo-American investment giant AllianceBernstein’s crypto analysts, namely Gautam Chhugani and Mahika Sapra. They opine that a favorable nod from the US SEC regarding Spot Bitcoin ETF applications would be the catalyst propelling Bitcoin to unprecedented heights.
These crypto visionaries don’t hinge their predictions on regulatory approvals alone; they see the upcoming Bitcoin halving event scheduled for April and a surge in corporate demand as pivotal accelerators for Bitcoin’s ascent to the $80,000 mark.
“2024 stands poised to mark a pivotal year for crypto—a point of dramatic inflection,” declared the analysts. They foresee a gradual but significant build-up in Bitcoin ETF flows, as entities striving to emerge as frontrunners will intensify their marketing efforts and Bitcoin branding. This anticipated momentum could snowball, propelling the crypto market to new echelons.
AllianceBernstein’s analysts have cast their predictions further, estimating an inflow of around $5 billion into Spot Bitcoin ETFs as 2024 unfolds. They suggest that these inflows might double to $10 billion in the latter half of the year, driving projections of Bitcoin attaining a monumental $1.5 trillion market cap as the year concludes.
Notably, however, as anticipation swells for the SEC’s imminent verdict on Spot Bitcoin ETF applications set for January 10, the SEC itself has issued a caution. It has released a report urging investors to stave off the impulses of FOMO—the Fear Of Missing Out—on investments. In a bid to aid investors, the report offers guidance on resisting FOMO, maneuvering through market volatility, and mitigating investment risks.
The SEC’s message is stern and clear: investing must be a disciplined venture devoid of emotional lure. The mantra encouraged by the regulator stresses the importance of personal judgement over herd mentality in investment decisions: “Say ‘NO GO to FOMO.'”
The advice laid out by the SEC is a firm reminder that investment choices should be reflective of individual analysis and risk tolerance, not swayed by the fleeting sentiments of the market crowd. Thus, as the world closely watches the interplay of regulatory decisions and market dynamics, the mantra to counter FOMO might serve as a valuable anchor for both seasoned investors and novices alike.
