The entire crypto market, bitcoin (BTC) first and foremost, is currently experiencing a bad patch characterized by a significant downward trend. Despite this state of affairs, some analysts expect the flagship crypto to regain color by the end of the year. The recently approved Bitcoin Spot ETFs should ultimately drive this change according to them.
The anticipated return to favor of bitcoin (BTC)…
While it has fallen significantly in recent days, bitcoin (BTC) is at the heart of all speculation. The flagship crypto has risen above the $40,000 resistance that it had brilliantly broken a few weeks ago. It is currently worth around $41,700.
Despite this bearish context which saw bitcoin (BTC) lose 3.58% of its valuation in one week, the outlook for the asset is not gloomy. On the contrary, the flagship crypto should restore its image during the year.
In any case, this is what analyst James Butterfill expects. According to him, by the end of this year, bitcoin (BTC) would strengthen its valuation. The latter should then reach the $60,000 mark, a level which the asset has not approached since 2021.
In a recent analysis, James Butterfill explains the levers that could support this projection. They mainly concern the recent historic approval of Bitcoin Spot ETFs by the US stock market regulator.
By the recent emergence of Bitcoin Spot ETFs
On Wednesday, January 10, the Securities and Exchange Commission (SEC) authorized 11 Bitcoin spot ETFs. Among them, heavyweights like BlackRock’s iShares Bitcoin Trust and Grayscale’s Grayscale Bitcoin Trust.
According to James Butterfill, this historic decision is expected to trigger fierce competition in the financial market. Indeed, this recent approval marks a significant shift in investor acceptance of digital assets.
The launch of these Bitcoin ETFs marked a historic day with a record trading volume of $4 billion. In this context, the analyst estimates that an investment of 10% of the $3 billion in assets currently managed could propel bitcoin (BTC).
The anticipated reduction in rates from the Federal Reserve (Fed) in early 2024, he adds, could strengthen the appeal of the flagship crypto in the same way as gold. A position which, overall, echoes that already expressed by asset managers like VanEck and Bitwise. For now, the crypto fallout from the approval of the Bitcoin Spot ETFs is still awaited. At the same time, some believe that the BTC collapse is only just beginning.
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