- The Bitcoin (BTC) halving event is due to take place in April 2024 and several major financial institutions have recently filed a Bitcoin ETF application
- The BTC price prediction algorithm has forecasted a +192% gain over the next year, which would take BTC above $100,000 for the first time in history
- BitGo CEO Mike Belshe explains why the SEC may not approve spot Bitcoin ETFs this time around
As bullish as it gets for BTC? The price prediction algorithm targets $100,000 in the next 12 months
Bitcoin (BTC) has reached $37,326 at the time of writing after a +25% move in the past 30 days. In total, BTC is +126% up YTD as the largest cryptocurrency by market cap continues to post bullish price action during an uptrend that has lasted for almost an entire year.
Investors are still waiting for a final decision on a series of Bitcoin ETF applications that were submitted back in June. Blackrock, Ark Invest and Fidelity were among the financial institutions that submitted their plans to the Securities and Exchange Commission (SEC) this summer, and Bloomberg analysts believe there’s a 90% chance that the applications will be approved by January 2024.
Bitcoin ETFs have injected real optimism into the crypto markets since they first hit the headlines. BTC is more than +50% up since June, and with the next Bitcoin halving event now on the horizon, price action remains positive. The BTC price prediction algorithm expects a +69% gain from the current price before the halving takes place, in addition to a +192% move by this time next year.
In total, the AI price model has forecasted that BTC will climb to $109,364 by October next year.
SEC needs to make a final decision on Bitcoin ETFs by January, what could this mean for crypto?
BitGo CEO explains why the SEC might reject Bitcoin ETF applications
Some of the biggest asset management companies in the world were among the institutions to file a Bitcoin ETF application to the SEC. It was reported on 9th November that the SEC had an 8-day window where they could officially approve all 12 ETF applications, however the 17th November came and went and there has still been no final decision.
While general consensus on the outcome remains positive, BitGo CEO Mike Belshe stated that the SEC could take issue with one key detail that underpins most of the ETF applications in question. BlackRock named Coinbase as its BTC custodian in its filing, while Valkyrie and Fidelity named Coinbase as its surveillance-sharing partner.
Belshe stated that, since Coinbase is officially an exchange and not a custodian, that the institutions may need to separate out their providers in order to fully comply with financial regulations. As reported by Coindesk, Belshe believes that the SEC could reject the Bitcoin ETFs for this reason.
If Bloomberg analysts are right in thinking there’s a 90% chance of an approval, what could it mean for crypto?
Bitcoin ETFs have long been an area of interest for crypto investors. While the SEC has never officially approved a Bitcoin ETF application in the United States, there have been several instances of Bitcoin ETFs being offered around the world. However, it’s thought that Bitcoin ETFs in the US could provide major buy pressure from global institutions and high net worth individuals alike.
The SEC has rejected all Bitcoin ETF applications submitted in the past, including from some of the financial institutions that filed in June. If the current batch are accepted, it would be a change of tune from the SEC following the conclusion of its 3-year court case with Ripple Labs. On balance, this series of events could usher in a new era of regulatory clarity for crypto investors in the US.
What is the Bitcoin halving, and why is it relevant to BTC price action?
The Bitcoin halving is a deflationary event that was enshrined in the Bitcoin code base when Satoshi Nakamoto wrote the whitepaper in 2009. The halving occurs every 210,000 blocks and reduces the BTC reward that miners earn for securing the infrastructure and processing new transactions.
210,000 blocks equates to roughly 4 years. By reducing the mining reward by half, new supply entering the market is permanently limited. As a result, the existing supply becomes increasingly scarce as there is limited new BTC that can dilute its value. This deflationary effect has sparked buy pressure and new all-time highs for BTC within 18 months of each prior halving event.
The 840,000th Bitcoin block — which will mark the 4th halving event in history — is due to take place in April 2024. Coupled with fresh optimism surrounding regulatory clarity in the United States, this is a key reason why Bitcoin price action has remained positive throughout 2023.
Image via Bitcoin Block Half
Bottom line: Investors on the watch for SEC approvals, algorithm forecasts another ATH for BTC post-halving
Recent Bitcoin ETF developments have dominated the headlines, but the Bitcoin halving event provides an equally bullish catalyst. Not only has BTC formed new all-time highs in the months following each prior event, but the halving has also historically sparked a market-wide bull run that has caused altcoins to skyrocket too. As the US seems to be warming to cryptocurrency as an asset class, many investors are now braced for upside.
The BTC price prediction algorithm expects the price action to reflect the positive recent developments. The AI expects new all-time highs by October 2024 as BTC has been projected to breach $100,000 for the very first time. In total, this would be a +192% price increase from the current level.
With the bullish BTC price prediction potentially ushering in a new crypto bull market, check out the AI’s latest price predictions for a number of key altcoins: