Bitcoin is recuperating from the recent losses it incurred thanks to China. The nation has become the biggest as of late to rock the crypto world by ending all bitcoin transactions and declaring the digital currency and all its counterparts illegal.
Bitcoin Is Headed for the Stars
However, it looks like bitcoin has survived the aftermath and after falling to about $42,000 per unit, the currency is trading once again above $43K. In addition, smaller coins – such as Ethereum – have also surged as much as 12 percent in the past few days, meaning the digital currency space may have been hit, but it wasn’t knocked down.
Now, it is being predicted by several analysts that the Securities and Exchange Commission (SEC) could finally approve a bitcoin or crypto-based exchange-traded fund (ETF) as early as next month. This could potentially cause the price of bitcoin to shoot up to about $100,000, according to some.
Mike McGlone – a strategist with Bloomberg – recently commented in an interview:
There’s still a high probability that the U.S. is just going to follow Canada, maybe with a futures-based bitcoin ETF. There are now over 30 [bitcoin ETF] applications, and the fact that money is migrating from the U.S. – from Cathie Wood and Ark – towards Canada, the pressure is quite strong and high for the U.S. regulators to say, ‘All right, we’re kind of missing out here and we need to do that.’
The SEC has been very slow to approve such a product, claiming that the risk and volatility associated with bitcoin and its many crypto counterparts are too high to protect investors. Gary Gensler – the man at the head of the SEC table – commented not too long ago that he would be willing to approve such a product if it was based on futures technology, though this has sparked criticism from several traders and industry experts, who say that this would make the product inferior.
McGlone is claiming now that bitcoin will hit $100K by the end of the year, though he thinks it’s possible the currency could hit this mark as early as October. He says:
[After bitcoin broke] $10,000, it’s more likely to go to $100,000. The thing that I’ve underestimated this year is how much there’s been disdain and outflows from gold, and people giving up on gold and going to bitcoin, and going to bitcoin and Ethereum, basically putting bitcoin and Ethereum in the same bucket as gold.
Next Month Will Be Big
McGlone also sees big things happening for Ethereum soon given that the asset is up nearly 700 percent since the beginning of the year. He states:
If bitcoin just catches up to Ethereum, of which there have been some ETFs launched in Canada, it would be at $100,000. In fact, it would be close to $130,000, so I think that’s part of the reason it’s probably going to get there, and the question is when.