In a bold prediction, Galaxy Digital, a prominent crypto investment firm, anticipates a substantial 74.1% surge in Bitcoin’s price within the first year following the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. This forecast, detailed by Galaxy Digital’s research associate Charles Yu in a blog post on October 24, 2023, is grounded in an assessment of the potential impact of fund inflows, drawing parallels with the trajectory of gold ETFs.
Yu’s analysis suggests that the total addressable market size for Bitcoin ETFs could reach a staggering $14.4 trillion in the inaugural year post-launch. The projected increase, according to Yu, is expected to commence with a 6.2% upswing in the first month, gradually stabilizing at a 3.7% monthly increase by the end of the twelfth month.
Despite utilizing Bitcoin price data from September 30, Yu’s calculations indicate that a 74.1% surge would propel Bitcoin’s value to over $59,000. This optimistic outlook aligns with a similar estimate by Markus Thielen, the head of research at Matrixport, who, in an October 19 post, predicted that Bitcoin could rise to a range of $42,000 to $56,000 if BlackRock’s spot Bitcoin ETF application receives approval.
Looking beyond the initial year, Yu foresees the U.S. Bitcoin ETFs’ addressable market expanding to $26.5 trillion in the second year post-launch and an impressive $39.6 trillion after the third year.
The crypto community awaits with bated breath as these projections hint at a potential bull market triggered by the introduction of Bitcoin ETFs in the United States. Only time will tell if these optimistic forecasts will materialize and mark a significant turning point in the trajectory of the world’s leading cryptocurrency.
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