- 1 According to Ash Crypto, the impact of a spot Bitcoin ETF would boost the price of Bitcoin to $500,000.
- 2 The crypto trader believes Bitcoin will outperform gold, stocks, and bonds in market capitalization.
- 3 Ash Crypto contrasted Bitcoin to gold, whose market capitalization increased considerably after ETF certification.
The advent of spot bitcoin exchange-traded funds (ETFs) in the United States is poised to ignite the next massive bitcoin bull run. According to crypto trader Ash Crypto, approval of such ETFs opens the floodgates for capital inflows that could push Bitcoin’s price to a staggering $500,000.
ETFs Unleash Tidal Wave of Liquidity
Ash Crypto likens what’s coming for Bitcoin to the evolution of the gold market after the launch of the first gold ETF in 2003. In the following years, gold’s total valuation ballooned from $2 trillion to over $16 trillion.
He sees no reason why bitcoin can’t enjoy a similar momentous run over this decade as more mainstream ETF exposure makes adoption simple for everyday investors. Instead of a lengthy vetting process, anyone with a standard brokerage account could gain price exposure instantly.
“Gold had its time to shine when the ETF opened up investing to more people,” Ash Crypto tweeted. “Bitcoin’s time is now.”
The approved spot bitcoin ETFs differ from the existing futures-based offerings in that they directly hold bitcoin as the underlying asset. It provides a tighter correlation to Bitcoin’s actual price changes.
By eliminating the futures basis risk, the spot ETFs more closely track Bitcoin’s daily volatility. They provide a portal for pure-play price exposure that futures contracts cannot provide.
$8 Trillion Market Cap on Horizon
Using gold’s history as a template, Ash Crypto believes Bitcoin boasting just a 20% slice of gold’s current total valuation is an attainable goal. That translates to a staggering $8 trillion market capitalization.
With only 21 million maximum supply, bitcoin reaching that market cap threshold implies a price per coin of around $500,000. For reference, bitcoin trades nearly $20,500 for a total $400 billion overall valuation.
So, in essence, Ash Crypto sees bitcoin valuations growing 20-fold or 2,000%. Besides, it still pales compared to other major asset classes like stocks and bonds, each currently exceeding $100 trillion in market caps.
Of course, an increase to $500,000 would take time to happen. But like gold post-ETFs, Ash Crypto notes, “this is a long-term target, so ignore the short-term price pullbacks.”
Investor Exodus from Stocks and Bonds
A key driver for ushering in this era of hyperbitcoinization revolves around markets like stocks and bonds faltering. Thus, prompting mass liquidations by investors seeking haven assets.
Ash points to signs this is already playing on following nearly $20 trillion in value destruction across global equity and bond markets in 2022. Loss of faith has intensified a search for alternative stores of value. Additional wealth preservation catalysts like worsening inflation and economic stagnation may only compound flows out of traditional markets going forward.
Cryptocurrencies stand to gain, with bitcoin specifically attracting buyers given its status as ‘digital gold.’ Allocating just a fraction of exoduses from stocks and bonds would allow for staggering moves higher.
With spot ETFs as the gateway for accessing bitcoin conveniently in retirement portfolios, Ash Crypto thinks this retail rush still lies ahead. If even a trickle of the current $140 trillion stocks/bonds complex enters Bitcoin, a huge upside awaits, according to him.
Others Forecast $1 Million+ Bitcoin.
The Ash Crypto is far from alone in predicting moonshot bitcoin prices in coming years.
Fellow crypto analyst Lark Davis recently highlighted uber-bullish long-term projections Ark Invest CEO Cathie Wood made. Her firm sees bitcoin reaching its base case target of $600,000 on further asset class adoption.
But Wood also reveals Ark has a bull case model pointing to $1.5 million per bitcoin by 2030! Driven by concerns around eroding fiat currency purchasing power, this scenario shows bitcoin establishing itself as a global monetary standard replacing the dollar.
While an unfathomable figure at the moment, early Bitcoin pioneers fought for exactly this vision from day one. Moreover, the impending spot ETF tide may bring enough momentum to turn $1 million Bitcoin from laughable to inevitable sooner than most expect.
The introduction of spot Bitcoin ETF trading in the US is seen as a catalyst for substantial capital inflows, potentially driving Bitcoin prices to $500,000. Analysts believe that as trillions exit traditional markets, Bitcoin, often dubbed digital gold, is poised to benefit. The institutional support for spot ETFs adds credibility to bullish projections, making the surge in Bitcoin value a matter of “when” rather than “if,” according to optimistic forecasts.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.