Bitcoin may never go below $ 50 again, says on-chain analyst Ki-Young Ju. But as usual, there are conditions that follow this possibility. In a tweet, Ju said Bitcoin could follow the same path gold took in 2004 when the first Gold Exchange Traded Fund (ETF) was approved. Prices have exploded and gold has raised the bar. If Bitcoin were to mimic this pattern, the flagship digital currency may never again trade below one quotation price of $ 50.000.
The words of Ju
“The NYSE listed the first gold ETF in November 2004 and the price has never turned back. Many economic factors influenced the price of gold, but the ETF's listing played an important role in the inflow of global institutional funds. We may never see this price for BTC again once the ETFs are approved ”.
The price of Bitcoin is expected to shock the market, should an ETF be approved. This is the position that many other Bitcoin supporters have taken. Ju explains the possibility of the asset going to the moon, saying the US could be the centerpiece of the scene for other countries. This is because more and more institutions could be persuaded to adopt the asset and move forward to launch their ETF. This could in turn prolong the bull run as Bitcoin bulls send the asset to the moon.
“Imagine when the SEC approves Bitcoin ETFs. At that point more and more institutions will buy BTC and more and more global financial services will launch Bitcoin funds. How much could the price of BTC go up? The bull market could last longer than we think ”. - said Ki Young Ju.
Will the first ETF be approved this year?
The craze for a bitcoin ETF in the United States has intensified since the beginning of the year. Currently, there are eight ETF documents pending approval by the SEC. In 2014, the first Bitcoin ETF was rejected by the SEC, but this year there is a shared market sentiment that the US will register the approval of its first Bitcoin ETF.
Seeing how Bitcoin ETFs have flourished in other countries, a US-based ETF is expected to take the market to new heights. Currently, Canada boasts three ETFs, one of which has reached $ 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 impose a ban on bitcoin, did not specifically state that an ETF will be approved this year, he previously pointed out that it was in and that the arrival of the new president Gary Gensler could speed up the approval process.
