Will Bitcoin Price Hit the $77k Level After ETF Approval by the SEC?
Qadir AK3 Jan 20242 min read
People hope the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin exchange-traded fund (ETF) soon. But it seems like the SEC still has a lot of paperwork. Some think they might announce by the end of this week, while others believe it could happen early next week before the January 10 deadline.
In a new video, British Hodl talks about the Bitcoin ETF, explaining why it’s a game-changer. He points out something crucial: how people usually invest in Bitcoin differs from other assets. Normally, regular folks like us put money into investments now and then, not regularly like big institutions do. But with the Bitcoin ETF, things could change. British Hodl says that the ETF allows big funds, like retirement plans, to invest a little in Bitcoin regularly.
This constant flow of money, made possible by the ETF, could quickly use up all the available Bitcoin in the market. While many focus on how much money will enter Bitcoin over the years, British Hodl thinks we should pay attention to the everyday money coming in because of the ETF.
He explains that research suggests keeping Bitcoin’s price stable at $30,000 requires about $30 million in daily buying. So, if we apply this to the first year of Bitcoin ETF trading in the U.S., British Hodl thinks we could see $25 billion in total. That’s an extra $99 million every day.
Breaking it down, he says this demand could make the price of Bitcoin jump to $515,000 on the first day of trading. But he admits this is a simple calculation and doesn’t consider things like short-selling or what regular people might do.
Even with a more conservative estimate of $10 billion from Bloomberg analyst James Seyffart, British Hodl still sees the price going up to $77,000 on day one. He reminds us that Bitcoin is a global thing, and the impact will be felt worldwide.
