According to Coindesk, blockchain firm CryptoQuant evaluated how the approval of spot Bitcoin ETFs will affect the market in its recent report.
Stating that the potential approval of Spot Bitcoin ETFs will increase the market value of BTC, CryptoQuant said that if the ETFs are approved, the market value of Bitcoin will reach 900 billion dollars and the total crypto market value will grow by 1 trillion dollars.
At this point, CryptoQuant analysts pointed out that the event that started the bull in 2020-2021 was the adoption of Bitcoin by corporate companies, and argued that the next BTC bull could be started by financial institutions that provide Bitcoin access to their customers through spot ETFs.
CryptoQuant said in its report that if spot ETFs are approved, the Bitcoin price could rise to between $50,000 and $73,000.
“The value of assets under management of companies that have applied for the Bitcoin spot ETF is approximately 15.6 trillion dollars. If companies put 1% of this figure into these ETFs, approximately 155 billion dollars can enter the Bitcoin market.
This represents almost a third of Bitcoin's current market value.
If this scenario happens, hypothetically the price of Bitcoin could rise to between $50,000 and $73,000.
Historically, in previous bull markets, Bitcoin's market cap has increased 3-5 times more than its realized value.
Accordingly, every $1 that enters the Bitcoin market shows that the market value of BTC can increase by $3 to $5.”
CryptoQuant is not the only platform that thinks spot Bitcoin ETF approval could push the BTC price higher. Matrixport research Markus Thielen also said, “No one will dare to enter a short position in BTC in the foreseeable future. Even if the Cointelegraph news is false, BTC can still go higher in anticipation of confirmation.”
Bitcoin, which rose above $ 30,000 with fake spot Bitcoin ETF news, is trading at $ 28,300 at the time of writing.
*This is not investment advice.