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The Anticipation of Bitcoin ETF Approval in 2024 in the U.S. Market

In the ever-evolving world of cryptocurrency, all eyes are on the U.S. market with high hopes of Bitcoin taking a bullish turn in 2024. One of the key factors causing this surge in optimism is the widespread expectation of spot Bitcoin ETF approvals by January 2024. However, amidst the prevailing optimism, Anthony Pompliano, a well-respected figure in the crypto industry, recently shared a differing viewpoint that has sparked intense discussions among enthusiasts and investors.

Assessing the Impact of Bitcoin ETF on the Crypto Market

In a detailed post on Twitter, Pompliano meticulously examined the potential impact of a Bitcoin spot ETF on the market. Contrary to the prevailing bullish sentiment, he argued that an inflow of tens of billions of dollars would only result in a modest 12% price increase, based on BitcoinÔÇÖs current market valuation of $850 billion. However, it is crucial to note that this calculation does not provide a complete picture of the potential impact.

Pompliano further delved into the liquidity issue, highlighting the fact that approximately 70% of all Bitcoin has remained static for over a year. In light of this liquidity crunch, he suggested that a $100 billion influx would represent a staggering 40% rise in BitcoinÔÇÖs liquid market capitalization, which currently stands at approximately $255 billion.

Exploring Price Predictions

While acknowledging the growth potential, Pompliano maintained a cautious stance. He argued that even with significant ETF inflows, BitcoinÔÇÖs price is unlikely to reach its historical peak of $69,000. Instead, he emphasized other factors that could influence BitcoinÔÇÖs trajectory, such as the anticipated supply halving in early Q2 and potential shifts in central bank policies, particularly by the Federal Reserve. According to Pompliano, these elements could lead to a speculative increase in the value of assets like Bitcoin.

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Concluding Thoughts

Pompliano refrained from providing a specific price forecast but anticipated a significant upswing in BitcoinÔÇÖs value in the upcoming bull market. He acknowledged the complexity of investment predictions, emphasizing the inherent challenges in forecasting the future of a volatile asset like Bitcoin. Ultimately, he highlighted BitcoinÔÇÖs enduring appeal and the continuous blockchain transactions as the cryptocurrencyÔÇÖs most reliable aspects.

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