After enduring a harsh crypto winter in 2022, Bitcoin (BTC) has sprung back to life with an impressive resurgence in 2023. Now, the world’s leading cryptocurrency is gearing up for a significant breakthrough as it sets its sights on overcoming the formidable resistance level at $32,000.
Fueling this renewed momentum is the mounting excitement surrounding the possible launch of a spot Bitcoin exchange-traded fund (ETF) in the United States, which could finally make BTC a mainstream asset among institutional investors.
Weighing on this matter, Florian Grummes, financial analyst and managing director at Midas Touch Consulting, said in a July 10 interview with Kitco News that he believes a potential approval of a Bitcoin ETF would likely be one of two key factors that could serve as a powerful price catalyst and propel BTC to as high as $100,000 by the end of 2024.
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The second factor that could drive Bitcoin’s next bull run is the halving event, which is expected to take place in April 2024, Grummes noted.
Spot Bitcoin ETF approval could bring ‘a lot of institutional buying’
On June 15, asset management giant BlackRock (NYSE: BLK) filed an application with the US Securities and Exchange Commission (SEC) to launch a spot Bitcoin ETF. The move was mimicked by several other prominent traditional finance (TradFi) firms, including Invesco, Valkyrie, Fidelity Investments, and WisdomTree, among others.
The SEC viewed the fillings as inadequate, adding they lack details and clarity. BlackRock then addressed the SEC’s comments and refiled the application.
When asked about his views on this matter, Grummes said he thinks BlackRock will ultimately obtain approval but “we just don’t know how long it would take.” If approved, “you can definitely anticipate a lot of institutional buying and a lot of retail buying coming into this market,” the expert added.
In fact, Grummes thinks that even the sole anticipation and hype around a spot Bitcoin ETF could elevate BTC’s price up to $49,000.
“It’s still unclear but there is still reason to have the hope or the fantasy that this will come and that could drag Bitcoin on towards 40K, 45k, [or] even 49k.”
– Grummes said.
A potential pullback to $25,000 prior to a $100,000 rally
Grummes explained that this price of roughly $50,000 represents a retracement level, similar to the one seen in the last bear market.
Notably, he said BTC “should pull back maybe to $25,000 – $30,000 again” before halving and a potentially approved ETF comes into play.
“The halving will change everything and together with the potentially approved Bitcoin ETF it would definitely drastically change everything and then a $100,000 in the next year is very likely.”
– the financial expert added.
But to reach this milestone, Bitcoin will first have to break through the resistance around $69,000 – the cryptocurrency’s all-time high.
Bitcoin halving is an event that occurs approximately every four years, where the reward for mining new Bitcoin blocks is cut in half. Historically, Bitcoin halvings have had a significant impact on BTC price, leading to a period of increased scarcity and often resulting in price surges due to reduced supply and increased demand.
