Bitcoin may never drop below $50k asserts on-chain analyst Ki-Young Ju. But as usual, there are conditions that follow this possibility. In a tweet, Ju analyzed that Bitcoin could follow the same path that gold took in 2004 when the first Gold Exchange Traded Fund (ETF) was approved. Prices erupted and gold set the bar higher. Should Bitcoin imitate this pattern, the flagship digital currency might never trade below a price value of $50,000.
As Ju explained:
“NYSE listed the first gold ETF in Nov 2004, and the price never came back.
Many economic factors have affected the gold price, but listing ETF would have played a major role in the inflow of global institutional funds.
We may never see this BTC price again once ETFs approved.”
The price of Bitcoin is expected to disrupt the market, should an ETF be approved. This is the stance that many other Bitcoin proponents have taken. Ju explains the possibility of the asset going to the moon, saying that the United States may set the center stage for other countries to follow. After which more institutions may be convinced to adopt the asset and go-ahead to launch their own ETF. This could in turn cause the bull run to be prolonged as Bitcoin bulls send the asset to the moon.
“Imagine when SEC approves Bitcoin ETFs. US followers like Korea will approve Bitcoin ETFs, more global institutions will buy BTC, and more global financial services will launch Bitcoin funds.
How much BTC price would be then?
The bull market may last longer than we thought.” – Ki Young Ju asserted.
The craze for a bitcoin ETF in the United States has intensified since the start of the year. Currently, there are eight ETF filings awaiting approval from the SEC. Back in 2014, the first Bitcoin ETF was rejected by the SEC, but this year, there’s a shared market sentiment that the U.S will record the approval of its first Bitcoin ETF.
Seeing how Bitcoin ETFs in other countries have flourished, it is expected that a U.S based ETF will take the market to new levels. Currently, Canada boasts of three ETFs, one of which has hit $1.1 billion in assets under management.
Although SEC commissioner Hester Peirce, who previously said it would be foolish for the U.S government to place a ban on bitcoin, did not specifically affirm that an ETF will be approved this year, she previously noted that it was long overdue and that the arrival of the new Chairman Gary Gensler could speed up the approval process.