The cryptocurrency market frequently exhibits anomalous behaviour. Crypto typically awakens as autumn sets in and the natural world goes to sleep.
Since the change appears to be for the better, its supporters may be happy this year. With a weekly gain of more than 30%, Bitcoin (CRYPTO: BTC) broke out of the summer range.
As the entire market awaits the long-awaited approval of the spot Bitcoin ETF, we investigated some noteworthy forecasts for the upcoming cryptocurrency boom.
Speaking as the keynote speaker at Benzinga’s Fintech Deal Day & Awards, Kevin O’Leary had a six-figure goal in mind.
One day, he hopes to see Bitcoin valued at $100,000. According to O’Leary, if it isn’t owned by institutions, it will never get there. He made this point by pointing out that the cryptocurrency community is too smaller in comparison to the global financial system.
A year ago, Brett Harrison, the founder and CEO of Architect and the former US President of FTX, issued a similar caution.
Any market needs institutional participation to be supported. In cryptocurrency markets, we observe that as prices decline, all trading activity completely dries up.
Harrison, however, made the right decision in anticipating that all markets, including cryptocurrency ones, would stabilize. In his role as keynote speaker, he will discuss “Building Back Crypto” and offer his most recent thoughts.
As for the market’s response to a spot ETF, while mostly expected, Alex Krüger, co-founder of investment research firm Asgard Markets, pointed out that it is not fully baked in the price.
Krüger wrote, “Anyone who believes the ETF is already priced in has just been proven wrong.” When approved, anticipate a +20% day move.
Matt Hougan, CIO of Bitwise Asset Management, is one of the few people best suited to discuss ETFs. Hougan, a former CEO of ETF.com and Inside ETFs, decided to join the biggest provider of cryptocurrency index funds after he bet his career on cryptocurrencies.
Though he cautions investors to temper their optimism, he thinks spot bitcoin ETFs that are listed in the United States will see net inflows of $55 billion over the next five years.
Given the history of capital inflows into new ETFs, he believes that investors will initially be let down. Hougan stated that it would be historically unprecedented for social media predictions of spot bitcoin ETFs to raise as much as $30 billion.
Hougan will participate in a panel titled The Rise of Crypto ETFs and Regulatory Considerations alongside Anna Paglia, MD of Invesco, another seasoned ETF veteran.
John Glover, the CIO of cryptocurrency lender Ledn and a former MD at Barclay’s, is optimistic about spot ETF development but prefers to take a more comprehensive approach.
Glover predicted in September that as household balance sheets start to struggle with increased financing costs, we’re likely to see the US enter a recession in the upcoming quarters.
He anticipates that all risk asset prices will start to decline as this plays out, he said, adding cryptocurrencies to the list.
