Fundstrat, a leading investment research firm, has predicted that the price of Bitcoin could skyrocket to $180,000 in the next three years, more than five times higher than its current level.
In a note released today, the company said that the launch of a spot Bitcoin exchange-traded fund (ETF) could significantly increase demand for BTC, while supply will dwindle with the halving scheduled for April 2024.
Fundstrat estimates the current daily demand for Bitcoin to be around $25 million, which is matched by daily mining rewards of approximately $25 million.
However, according to the memo, if a BTC ETF is approved by regulators and released in the US, it could attract an additional $100 million daily demand for BTC. This will create a significant imbalance between cryptocurrency buyers and sellers.
Fundstrat said that to reach an equilibrium, the price of Bitcoin must rise significantly. The company has calculated that before the next halving event, the price of the coin will be between $140,000 and $180,000.
*Not investment advice.