Bitcoin (BTC) proponents argue that the first cryptocurrency maintains bullish underlying fundamentals, with the recent approval of a US spot exchange-traded fund (ETF) adding to its strength.
Notably, SkyBridge Capital founder Anthony Scaramucci believes Bitcoin will likely surpass $100,000 by 2025, citing the impact of the halving event, Reuters reported January 15.
While the spot ETF did not live up to short-term expectations on Bitcoin’s valuation, Scaramucci highlighted that the long-term impact of the product, combined with the halving, will take the asset to $170,000 by 2025.
Speaking at the World Economic Forum (WEF) in Davos, Scaramucci noted that Bitcoin will likely quadruple in the coming months.
“If Bitcoin is at $45,000 during the halving, where it is roughly right now, it will be at $170,000 by mid-to-late 2025. <...> Wherever the price is on halving day in April, multiply that by four, and it will reach that price in the next 18 months,” he said.
Impact of Selling Pressure on Bitcoin ETF
Regarding the ETF not living up to initial expectations, Scaramucci suggested that the performance was likely a result of investors moving away from the Grayscale Bitcoin Trust and into the spot ETF.
Specifically, he predicted that the ETF’s effect on price would likely manifest itself within eight to 10 days of approval. In this scenario, analysts argue that an imminent bull run is likely as investors move to new institutional crypto products and Bitcoin faces a supply shock due to its upcoming halving event.
His observations about the ETF’s unexpected performance are in line with analysis by reformed hedge fund manager James Lavish, who suggested that this was likely due to high selling pressure from GBTC holders who converted to the spot fund.
As reported by Finbold, although the ETF failed to have the desired effect on cryptocurrency prices, the products saw significant volume, totaling nearly $10 billion in the first three days.
Meanwhile, Bitcoin continues to trade above the $42,000 support zone. At the time of writing, BTC was worth $42,364, with weekly losses of nearly 10%.
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