John Deaton, a prominent attorney representing XRP holders, has made an interesting point about the future price of Bitcoin (BTC) by comparing its market cap to that of gold. Deaton, who has over 276,300 Twitter followers, posed the question of whether Bitcoin could reach half the market cap of gold, potentially pushing its price to around $300,000, almost ten times its current value.
The prediction is based on Deaton's belief that Bitcoin's current price presents an attractive opportunity for long-term investors. He also pointed to growing interest in Bitcoin, as evidenced by the high volume of client inquiries on BlackRock's website and the involvement of the world's largest asset managers in cryptocurrencies.
Optimism surrounding Bitcoin regulation and potential spot ETFs:
Sentiment towards cryptocurrency regulation has shifted significantly over the last week, with optimism starting to replace pessimism. The change was driven by the potential approval of a Bitcoin spot exchange-traded fund (ETF).
The participation of BlackRock in the discussions further boosted positive sentiment given the company’s impressive track record in gaining ETF approvals. BlackRock, which manages $10 trillion in assets, has reignited market enthusiasm for a Bitcoin spot ETF.
Data from IntoTheBlock shows that there has been a significant movement of funds in response to BlackRock’s Bitcoin spot ETF application. More than $1.4 billion worth of Bitcoin and Ethereum has been withdrawn from centralized exchanges (CEX). This large amount of buying activity indicates that the market is reacting bullishly to the potential ETF approval.
To understand the potential impact of a Bitcoin spot ETF, IntoTheBlock conducted an analysis comparing it to the gold spot ETF launched in 2003. The findings show that gold outperformed many other global assets in the following years, with prices surging an impressive 369% over the decade. This suggests that spot ETFs have the potential to grow substantially.
There is a renewed interest among major players and traditional finance:
On-chain analysis from IntoTheBlock suggests renewed interest in the possibility of a Bitcoin spot ETF from major players, particularly from traditional finance (TradFi) entities. Inflows from large holders hit a new yearly high, with addresses holding 0.1% or more of Bitcoin supply showing the most significant growth in holdings in 2023.
The surge in inquiries received by BlackRock and the market's positive reaction to the possible approval of a Bitcoin spot ETF reflect increased investor interest and highlight the growing recognition of digital assets in the traditional financial community.
Whether Bitcoin can reach half the market value of gold remains uncertain, but the current situation indicates a favorable environment for potential growth. Over time, the interaction between various factors will ultimately determine the future dynamics between Bitcoin and traditional assets.