Crypto market capitalization growth from bitcoin-ETF approval is estimated at $1 trillion
CryptoQuant analysts estimated the growth of the crypto market at $1 trillion due to bitcoin-ETF approval
According to CryptoQuant's calculations, the price of the first cryptocurrency can grow to $50-70 thousand with the injection of only 1% of institutional capital into the market
The analytical company CryptoQuant in a new report on the cryptocurrency market writes that in case of approval of bitcoin-ETF, the capitalization of the first digital currency can grow by $155 billion, and the total capitalization of the entire crypto market will add $1 trillion.
The first wave of institutional investors' interest in the cryptocurrency market occurred in 2020-2021. At that time, a number of large companies such as Tesla, Microstrategy, Square, and Grayscale first invested cash in Bitcoin. According to CryptoQuant, the next wave of interest from big players just might be due to financial institutions providing access to digital currencies through ETFs.
Several major financial institutions have already applied to launch bitcoin-ETFs, and the first ones could be approved in the first quarter of 2024. CryptoQuant estimates that if issuers invest 1% of their assets in these ETFs, the bitcoin price could increase to $50-70k.
On October 16, the rate of the first digital currency rose sharply by 10% on reports about the approval of the exchange-traded fund of the investment company BlackRock. When it turned out that there was actually no such decision, the price of the cryptocurrency quickly returned to previous marks. According to analysts, the rate jump gave market participants an idea of the possible consequences of the approval of the bitcoin-ETF.
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