Live – Muhammad Al-KhoulyAfter months of speculation, the US Securities and Exchange Commission (SEC) finally granted approval to launch 11 funds to invest in Bitcoin, as traders in the cryptocurrency markets expected a rise in prices following the Bitcoin move. authorities, considering that the approval is a potential incentive for the price of the most famous cryptocurrency in the world, markets above six figures for the first time.
Standard Chartered Bank and renowned cryptocurrency markets analyst, Tom Lee, were among the many names predicting a path for “Bitcoin” to surpass the $100,000 barrier after the American Regulatory Commission announced its expected decision, at a time when other analysts were describing the January 10 decision committee’s decision as… The “decisive moment” in the history of the cryptocurrency world.
Weak reaction
According to Yahoo Finance, market reaction has been weak so far, with the large-cap token up just under 1%, but this could be a classic case of investors buying on rumors and selling on news.
Bitcoin has jumped 70% since late October, when speculation about the Securities and Exchange Commission’s decision began, and is currently trading at its highest price in two years.
But Bitcoin still needs to double again to reach $100,000, but some believe this milestone could be reached by the end of 2024, with regulated spot ETFs potentially attracting big institutional names into the world of cryptocurrencies.
Price targets
Standard Chartered Bank is particularly bullish on Bitcoin. Earlier this month, the bank’s strategists predicted that spot Bitcoin ETFs could lead to inflows of between $50 billion and $100 billion for the token this year, and set a price target of $200,000 per currency at the end of 2025.
Meanwhile, Lee said in an interview with CNBC on the day the U.S. committee announced its decision that he expects the token to rise to between $100,000 and $150,000 over the course of the previous 12 months, while the code will reach $500,000 over the next five years. .
Half a million dollars
“There is limited supply, and now we have a potentially huge increase in demand through the immediate approval of Bitcoin (ETF), so I think within five years it will be possible to reach almost half a million dollars,” Lee said.
Carol Alexander, an economist at the University of Sussex, who successfully described Bitcoin’s decline in 2022 and its surprising return last year, does not aim too high, but still expects the price of the cryptocurrency to fluctuate between $70,000 and $100,000 by the end of the year, December 2024.
The expert told “Business Insider”: “I think it’s a very good thing for speculators that Bitcoin is rising in the short term. I wasn’t so optimistic before.”
Words of warning
Despite all this momentum, not all financial experts seem convinced that Bitcoin will reach $100,000.
Mohamed El-Erian, former PIMCO CEO and global economist, said in a post on platform “X” that while the US Securities and Exchange Commission’s approval could represent a “game changer” for cryptocurrencies, it is unlikely increases.. The use of cryptocurrencies, especially Bitcoin, on a larger scale.
He added: “While all of these factors are important in stabilizing cryptocurrencies in the investment world, they do not significantly enhance its role as a potential global currency… Expectations here are even more restrictive.”
A resource for speculation
The United States Securities and Exchange Commission itself has questioned Bitcoin’s potential as an investment tool.
Committee chair Gary Gensler said in a separate statement following its recent decision that the Bitcoin token is a speculative investment asset with primarily volatile qualities and is also used for illicit activities including ransomware, money laundering, sanctions evasion international and terrorist financing.
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2024-01-16 16:57:17
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