Following a massive price increase upon what was later revealed to be fake news on the approval of a spot Bitcoin (BTC) exchange-traded fund (ETF), the maiden cryptocurrency has somewhat consolidated its gains, but the situation has hinted at possible price gains in the event of an actual approval.
Indeed, crypto news portal CoinTelegraph originally shared that the United States Securities and Exchange Commission (SEC) had finally approved a spot BTC ETF, and before anyone realized the mistake, Benzinga and Reuters had already picked it up, and then it showed up on Bloomberg terminals, on October 16.
Bitcoin’s reaction to fake ETF news
In response to the original news, the price of the flagship decentralized finance (DeFi) asset had jumped from around $27,700 to $29,500 (an increase of over 6%) in mere minutes, only to drop again by more than 5%, to below $28,000 as it became apparent that the news was false.
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Although the price of Bitcoin has begun to return to its pre-pump state after the error became apparent, the whole situation has hinted at the possible crypto market response if or when the SEC eventually approves a spot Bitcoin ETF, although its possible price range in such an event remains unclear.
With this in mind, Finbold sought insights from Google Bard, the interactive artificial intelligence (AI) tool developed by Alphabet (NASDAQ: GOOGL), to understand how Bitcoin might trade if and when the crypto industry actually gets a spot Bitcoin ETF.
Google Bard’s range
In response to Finbold’s inquiry, Bard acknowledged that the approval of a spot Bitcoin ETF could, indeed, have a significant impact on the price of Bitcoin, taking into account the views of multiple analysts:
“Many analysts believe that it would lead to increased demand for Bitcoin, which could drive up the price. Some analysts have even predicted that the price of Bitcoin could reach $100,000 or even $200,000 if a spot ETF is approved.”
As the possible factors affecting the price of Bitcoin in case of an approval of a spot ETF, the AI platform singled out the overall sentiment in the crypto market, the demand for Bitcoin from institutional investors, the regulatory landscape for digital assets, as well as the overall economic climate.
Bitcoin price analysis
Meanwhile, Bitcoin was at press time changing hands at the price of $28,404, up 2.1% in the last 24 hours, as well as recording an increase of 2.7% across the previous seven days, and gaining 7.21% over the past month, according to the latest data retrieved on October 17.
As evident from the market’s reaction to the fake news of a spot Bitcoin ETF approval, a massive price increase for the largest cryptocurrency by market capitalization is possible. However, it is important to do one’s own research and weigh the risks before investing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
