Analysis firm Blofin has predicted potential price movements for Bitcoin (BTC) based on various macroeconomic factors.
Analysts suggest that the approval of a spot Bitcoin ETF could have a significant impact on the BTC price, potentially pushing it to new heights.
Regarding interest rates, the report states that the FED is unlikely to cut any interest rates in the next six months, while the European Central Bank is expected to continue its robust interventions in the face of high inflation.
The company also examines the internal distribution of liquidity in the crypto market, explaining how this could affect the price and market cap of BTC.
Market share data shows that BTC experienced a drop in market share during the “alt season”, but recovered steadily thanks to institutional buyouts and liquidity returns, reaching nearly 50% by July 2023.
Blofin's analysis offered insights into different scenarios that could arise due to several factors:
Scenario 1:
BTC's market cap is expected to fluctuate between $600 billion and $700 billion if investors' expectations remain muted and crypto market capitalization remains constrained. As a result, Bitcoin price is predicted to range between $30,880 and $36,026.
Scenario 2: Spot Bitcoin ETF Approval Will Increase Market Cap
If the Spot Bitcoin ETF gets regulatory approval, the overall crypto market market cap is likely to rise to around $1.50 trillion to $1.60 trillion, according to analysts. In this case, the market cap of BTC is expected to stabilize between $750 billion and $800 billion and the price is predicted to peak at $41,173 or potentially rise above $38,500.
Scenario 3: Interest Rate Drops and Positive Expectations
According to analysts, the combination of interest rate cuts, spot Bitcoin ETF approval and Bitcoin halving is expected to spur an increase in liquidity in the crypto market and lead to a significant recovery in total market capitalization exceeding $1.70 trillion.
The market cap of BTC could exceed $850 billion and its price could potentially reach a price of around $52,500, rising above $43,700, or over $1.02 trillion if BTC's market share rises to 60%.
*Not investment advice.
