3 Reasons Why Bitcoin is On its Way to $100K in Q4

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Meltem Demirors is the Chief Strategy Officer of CoinShares. In an interview, she hinted that Bitcoin will double its price by the end of 2021.

Despite the recent setback, the executive put a value of $100K on their target. The CSO also presented several reasons to back up her prediction.

Source: TradingView.com

Here are the reasons

Potential Bitcoin ETF approval

The CSO pointed out that the approval of Bitcoin ETFs in America would improve its price. She also hinted at this potential move’s likelihood. The support will give investors exposure to the crypto trade without owning actual bitcoins.

The chairman of the US SEC, Gary Gensler, also commented during the “Future of Asset Management North America” conference this week. Gary said that he is not opposed to accepting crypto as long it complies with all regulations. 

The U.S SEC has been avoiding the question for a long time. In 2017, Grayscale Investment filed a request, and the Securities & Exchange Commission denied them. Bitwise Investments then received another rejection earlier this year.

Cathie Wood, the CEO of ARK Invest and a well-known Bitcoin bull, has been waiting for her application to receive approval. Some experts within the Commission itself voiced their opinion on how complex the approval procedure is.

“My view has been that we’re overdue on approving one of these things. I also think we’ve dug ourselves into a bit of a difficult hole by setting standards for approval that are difficult to figure out how to meet.” Said Hester Pierce, a commissioner with the SEC.

Investors’ willingness to allocate to crypto is on the rise

Ms. Demirors mentioned the fund inflow into the crypto market from institutional investors and firms.

“We see a lot more firms taking on more bullish long calls. There’s a lot of cash sitting on the sidelines. And, a lot of investors are now contemplating an allocation to Bitcoin in their portfolios.” said the executive.

Besides, the executive noted a variety of ways in which firms can make their investments. Publicly listed investment vehicles are an option. Investing through platforms like Coinbase or Robinhood is also widespread among cryptocurrency users.

The interest in cryptocurrencies is shifting from retail investors to institutional ones. For instance, Blockdata has found that 55% of the top 100 global banks have cryptocurrency exposure. Some through direct and others indirect investments. Some notable financial institutions include Citigroup, Goldman Sachs Group Inc., and Barclays plc(BARC).

Moreover, It appears that almost a quarter of the 100 largest banks are aiming to provide crypto custody. 

Bitcoin supply scarcity

People tend to dismiss supply scarcity on Bitcoin. Yet, it’s time to face reality. Ms. Demirors pointed out. Bitcoin is not exempt from this issue as its supply shrinks in Q4, dramatically impacting its prices.

“$50 billion around the world in Bitcoin-based investment products. That’s supply that’s taken off the market. We can’t understate how important the supply constraint on Bitcoin is. In terms of its ability to drive dramatic price movements.” commented the CSO.