- The SEC’s approval of a Bitcoin spot ETF has been a hotly debated topic, with a recent false report claiming the approval caused a temporary 10% increase in the price of BTC.
- The likelihood of Bitcoin reaching $100,000 after SEC approval depends on various factors, with institutional demand being a significant factor. Increased institutional interest could lead to higher demand and drive up prices.
- Other factors, such as the regulatory environment and the timing of the Bitcoin halving in April or May, also play a role in determining whether BTC hits the $100,000 mark in the event of a one-time approval of a Bitcoin ETF.
The approval of a Bitcoin spot ETF by the United States Securities and Exchange Commission has been a hot topic of discussion for many months, especially after BlackRock – the world’s largest asset manager – also filed a request.
The discussion became even more heated this week after a false report exploded, claiming that a spot Bitcoin ETF has actually been approved by the SEC. The price of BTC immediately increased by around 10%, but then declined after the report turned out to be false.
That said, we decided to check in with ChatGPT to see what he thinks if BTC can reach the coveted $100,000 in case the SEC does indeed approve a spot Bitcoin ETF.
It’s not a yes or no question.
ChatGPT said whether Bitcoin hits $100,000 after the SEC approves a spot BTC ETF depends on several considerations.
Institutional demand, for once, is among the main criteria.
The approval of a spot Bitcoin ETF could make it easier for institutional investors to gain exposure to Bitcoin. Increased institutional interest could lead to higher demand and potentially drive up the price.
This is a thesis largely supported by Fundstrat’s chief analyst, Thomas Lee, who earlier stated that:
This (Bitcoin ETF launch) would bring the daily demand to $125 million, while the daily supply is only $25 million. The implied equilibrium price would have to increase so that daily supply matches daily demand. Equilibrium analysis suggests that the equilibrium price is between $140,000 and $180,000 before the April 2024 halving.
It’s not just that
And while the approval of a spot Bitcoin ETF would likely cause the price of the asset to rise, ChatGPT believes there are other factors to consider, such as the regulatory environment, for example.
According to the popular AI-based chatbot, regulatory developments beyond the Commission’s decision may also impact the price of Bitcoin. She believes that clarity, as well as favorable regulation, are capable of strengthening confidence. On the other hand, unfavorable regulatory actions can lead to more uncertainty.
It is also worth mentioning that next year the Bitcoin halving will take place in April (or May). This has always been a particularly bullish event for the price and if it coincides with the approval of a Bitcoin spot ETF, then the likelihood of the BTC price reaching $100,000 would likely be higher.
In the meantime, if you want to take a look at some of the most interesting Bitcoin price predictions, feel free to watch our recent video on the subject: