The crypto sphere is abuzz with excitement as the much-anticipated spot Bitcoin ETFs make their debut, sparking speculation of a potential surge in Bitcoin’s price. Analysts from the $725 billion asset manager AllianceBernstein are among those predicting a bullish scenario, suggesting that Bitcoin could reach new all-time highs this year.
According to Gautam Chhugani and Mahika Sapra from AllianceBernstein, the market has quickly priced in the new ETFs upon approval, but it has yet to fully account for the expected influx of ETF inflows and the impact of the upcoming Bitcoin halving. This event, which occurs roughly every four years, reduces the rate at which new Bitcoin enters the market by half, potentially leading to a supply crunch.
The analysts believe that the combination of higher demand and reduced supply could trigger a ‘FOMO rally,’ where investors, driven by a fear of missing out, may rush to capitalize on potentially lucrative gains. They note that while there is still a group of ‘disbelievers,’ there is also a growing interest among ‘curious investors’ who are keen to learn more about Bitcoin.
With the success of the spot ETFs, including those from BlackRock, Fidelity, and Ark Invest’s 21Shares, which have already accumulated more than $1 billion in assets, the stage is set for an exciting period in the crypto market. Bitcoin’s price has been on the rise since the start of the year, further fueling anticipation of what’s to come.
